I have no problems with pedaling, with no time for any other exercise the commute is quite possibly the only thing that keeps me sane. The only real challenge has been the quantity of gear required. I have forgotten a bike lock twice and realized that full rain gear is required even when the Weather Channel says it is sunny with no chance of rain. Between books, clothes, laptop, locks etc I am usually dragging around 30+lbs of ****.You know what I would suggest for that commute: electricity! My 4 mile commute from Wedgwood to UW was just about perfect distance. 7, or 12 as mine will be in 2013, is a bit longer than one wants at the end of a long day, agreed.
With regard to making vs. spending money: I'll have plenty of opportunity for more conventional week or two at a time vacations. Taking a whole huge chunk of time off isn't the norm, though, and teh wife-bot isn't much the camping (or camp-in-a-giant-RV) type.