After a couple of very sad weeks with no bike I finally found a bike that fit all of my needs.  Her name is Daisy and she is a custom made bike by an American expat here in Italy.  I am not sure when he started making these bikes (called Utility) but they are awesome.  The seat and the handlebars are a little higher than normal so when I ride I am not hunched over at all.  I can seriously ride for hours on Daisy and my back never starts to hurt.  Now I just need a bell, or maybe one of those really obnoxious clown horns!