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Because of that, I'd say pick whatever you like. A target date fund costing 0.06% is impressive, and each $10,000 only costs you $6/year. For that price you get the features of a target date fund like automatic rebalancing, and slowly increasing the bond percentage as you approach retirement.
Note target date funds allocate about 10% to bonds.
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So, I could keep the target date fund, pay a little bit more for it, and it will rebalance for me. Or I could rebalance to 90% Vanguard 500 Index Trust & 10% Vanguard Total Bond Mkt, have lower fees, but I would have to do my own re-balancing and as I get older move more to bonds, correct?
Better would be squeezing in some international: maybe 18% if you're reluctant (18/90 = 20% of your stock allocation). I know the expense ratio looks higher (0.07%), but it's purchasing stocks from countries around the world. And historically, international sometimes beats U.S. and sometimes U.S. pulls ahead.
Note the 10% bonds slowly changes over time. If you do your own allocation, you might want to keep an eye on a target date fund, and imitate it's bond allocation. So when it allocates 15% or 20%, you do the same.
It's good to save on expense ratios, but below 0.10% beware you don't make strategic decisions just based on saving a few dollars (literally a few dollars). But after one year of a maximum allocation ($18,000) you might expect the account to grow by more than $1000 in the average year. The expense ratios at $2.16/yr or $10.80/yr aren't likely to impact returns. I mention this also because you shouldn't exclude international just to avoid an expense ratio of 0.07%. That level of expense is very low - it's cheap diversification.
I'd also say that at some future time if you leave this company, I'd suggest keeping your 401(k) plan intact - don't roll it over. It's my first time giving that advice, but I don't think you will find better options for that cheap anywhere else. You also get some level of bankruptcy protection, and certain maneuvers with Roth Conversions are probably easier.