I suspect the practical response and approach depend to some extent on local custom. We've gradually moved from a rural farming area to a mixed area as developments come in. City people moving out present much more danger to everyone. An old guy in a nicely maintained 1970s pickup generally waits for a decent passing opportunity at a safe distance. A 40 something lady in a new SUV talking on a cell phone will do an illegal pass at 30 in a 15 mph zone to get to a blind stop sign. Sometimes the city people find there really is a tractor around that blind turn. Not often enough to instill country road sense.
So we generally travel side by side on the back roads until we hear someone coming, then we ride to the right in line. On the more major roads, we ride in line unless they're clearly vacant. And we never let cars stack up if we have a reasonable pullover and are going slowly. If we're cranking at 25 mph in a 35 mph zone, we don't pull over. We're always well within our typical laws and will go out of our way to let other traffic by. Seems a common sense approach.
The biggest problem with common sense approaches is, of course, impatience and recklessness on the part of drivers. Almost universally the dangerous drivers are in more suburban type vehicles. Minivans, SUVs, etc. Almost everyone else behaves sensibly. These are the same vehicles that get in single vehicle wrecks out here. And the same ones that get splattered pulling into traffic on the main roads.
The key for realistic cycling appears to me to be what is the safest compromise for everyone without unduly impeding reasonable use of the road. Not what one can get away with.
The problem LE faces is that cyclists look the same. The poor fellow riding to his manual labor job on a beat up mountain bike against traffic gets classified with the serious commuter and with the fast recreational performance rider. I doubt LE in many places expects crisp, polite, professional driving on the part of cyclists. Unfortunately many cyclists capable of polite, reasonable riding have some kind of burr up their rear about their right to the road and unreasonably impede traffic. This is just stupid.