[SteveC]

In Japan, where many people cycle, they ride on the footpath. It seems to work out fine.

[fivethirty]

The trade off being that it takes twice as long to get anywhere because you can't go very fast. At least that was my experience commuting on a bike in Japan.

[cmod]

Pedestrians also become hyper aware and responsive: http://www.youtube.com/watch?v=O_MphtzCOEc