[Toshi]

Personally, drop bars all the way. I ride 90% of the time on the hoods. The brakes are right there. I have a stronger sprint and a drop for the windy section.
The closer you are to the speed of traffic, the safer. If you can do 25 when traffic is doing 30, you are much better off. If you are stuck doing 15, drivers get grumpy and do stupid ****.
Plus, faster is funner.

This, but my answer is electrons, 1.75" tires, and full fenders. Or this:

 

[Da Peach]

^That looks pretty badass, but way overkill for my needs.

I wound up getting a used Devinci Liverpool (because of Steve Smith)

It's got all the fenders and racks I'll ever need, AND mech discs. So I'm happy.

I just need some cheapy lights and reflectors and a decent pannier to hold my work stuff. I want to be backpack-free if I can manage it.

 

[Toshi]

wrt lights: http://www.ridemonkey.com/forums/f2/how-create-ridiculously-bright-taillight-cheap-251237/ . Applies for headlight and taillight alike. See updates at bottom from atreyu.

 

[Austin Bike]

My commuter has a slight drop in the bars.