CB500 is not really in the same league ... carries extra 25lbs (which really is mind boggling difference) and has a quite a bit less power .... so as you said.
Yeah - it's a move up, milder, cheaper insurance but will hold value.
CB500x tho is a much hotter seller as it's a do everything machine except sport riding and it's not bad in the twists tho the suspension is marginal for that.
There are some good multi-lobe screens around.
Kid wants a Puig for his Fz8