I'll throw my two cents in: I don't post much on this site, but if you're considering buying a motorcycle today, the quality of an available on- line support forums for your bike needs to be considered. I check in every few days to catch up on new ideas and tips. I can tell you the level of knowledge and assistance available to anyone owning one of these bikes is incredible. From the how to DIY oil changes and brake pad replacements (complete with photos) to advanced carb alterations, there is very little need to toss excess money away to dealers who probably refer to this site themselves from time to time. I may buy another bike next summer for cross country rides and I guarantee I'll evaluate the bike based largely on information from an online forum. I'll be lucky if they are half as valuable as this group has been.

The Savage or S40 ( LS650 ) is a great bike, whether for a starter bike or something small for a small person or just because you like the characteristics of a big single.  They are comparitively simple, easy to maintain, tune, modify, use for a daily commute or ride the highway.
A stock machine is adequate for any type of riding, but when modified even just a bit the riding experience can be enhanced significantly.
As mentioned already, swapping the stock muffler for a very low cost HD Dyna/Sporty unnit and a carb rejet & tune will really add to the power and give a good exhaust sound.
If you want to get into more serious perfomance mod's it will respond quite well to it and reward the rider with a really fun ride and can be done for less than a grand.  This big single is just a great all-around road bike when modified for performance.  With a performance carb, camshaft, exhaust and suspension the bike runs great, handles very well and still got 48mpg.