Re:
Good find! The Bear Valley was roughly in the middle of the Marin food chain but there were two, the Bear Valley and the Bear Valley SE. The SE was better. If I remember correctly, the SE shares the same frame as the Eldridge Grade and Pine Mountain which were above it in the pecking order. Anyway, by all accounts, they ride very well; I don't think I've ever seen or heard any bad reviews of them.
A shorter stem will make the steering feel quite twitchy at first but you'll get used to it and adjust quickly enough. You might want to consider an inline, zero offset seat post as well if it's all a bit of a stretch. If you get it set up to your satisfaction, I'm sure you'll get a lot of enjoyment out of it.