I primarily use mine in the woods although it does see highway here and there. Bone stock it can take the highway like a champ and cruise at 70-80 no problems. The stock trailwings are great on road but really aren't meant for aggressive offroad riding. Only expect to put around lightly and don't go anywhere near mud. They were surprisingly good getting going in sand but the front tire washes out very easily.
Once i swapped to k760 DOT knobbies it handled like a slightly heavy dirtbike. I ride single track that measures less than handlebar width at its closest point and it can keep up with my buddy on his Husky te510 and in the faster stuff and can still keep up with my friends 250 in the tight stuff. Overall it's a great starting point and you can turn the DRZ into whatever you want it to be. The aftermarket support is amazing and the possibilities are endless. Other than being on the heavy side and only having 5 gears the bike is perfect.