I started with a Bandit 600 and now have a 2000 VFR.
I really like my bike. I would say that 2-up is an option, but it's not ideal... if you'd like that, go for a next-size-up sport-tourer like a Concours, ST1100, R11/12RT or FJR. (Funny enough, the Bandit was a little more comfty 2-up.) On the other hand, with a Corbin seat, I've done a few 500 - 700km days and it feels great. It's a little more comfty for one 1 than the more upright Bandit - which wasn't bad either.
For VFR's, Some people like the later ('02-on) bikes, some people prefer the earlier ones. I haven't tried a later one but I really like mine. Valve adjustments are harder and more expensive to do on the '02-on bikes. My bike isn't really fast but the front end gets light in 1st gear. With a pipe it sounds mean as hell, and it has a pretty good powerband at lower RPM.
Of course I'd be tempted by a K1200S or a 1050 Sprint ST. (I don't see how you think the Sprint ST is ugly???) If money and insurance weren't an issue, I might have looked for one of those.
I think the Bandit 1200 is compelling. The handling isn't awesome (you can still scratch a bit) but they're comfortable and have a lot of punch. Dirt-cheap, simple, upgradeable, and not a lot to go wrong on them, but a bit more rickety-feeling (at least my 600) and softer-sprung. Owning the 600 made me really want the 1200.