my bike is about 15 years old, cost less than $400 new, and I still use it for trails and downhill work. of course, the rims are completely coated in melted rubber from the brakes, i have to use my arms as shocks, and it weighs a lot, but it takes the hits and keeps on kicking.
i'd say my frame is a lot chunkier than that (those forks look awful thin), but for city riding, that bike is perfect for the price. worry not!