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I've had a couple of hybrids pass through my garage, some nicer ones even, and there's nothing wrong with the concept itself. As other anons have pointed out, the usual problem with "hybrids" is that they're poorly designed or spec'd and so do nothing well, but good ones are fine riding, versatile bikes.
Personally, I don't own one because I prefer a touring bike for transport purposes, and on casual cruising rides or mixed-terrain trips I'm perfectly comfy on bikes with drop bars.
