I have a DRZ400 that I ride around town all the time, and have done a bunch of trail riding with. Gnarly single-track, hill climbs, etc. It's a tank with a proven track record and is still extremely capable off road. I dropped it half way up a steep hill climb when it was super muddy, and I almost had a heart attack trying to get it turned around and picked back up. But that likely would have happened with any bike.

I think it's the perfect dual sport unless you want to do a lot of highway riding. Reasonable weight(340lbs), extremely reliable, reasonably good suspension and handling in technical off-road stuff, etc. And you can get one for 2500-3500 pretty easily.

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I'm now thinking of buying a Tenere 700 as well. Still seems very capable off road(albiet 100 lbs heavier), though likely not something that I'll be hitting technical single-track with. But the twin cylinder 700 with efi should be much better for highway travel and stuff, while still being able to travel some rougher off-road stuff.