Given the fashion sense of most bike commuters (well, of most people in general), it's hard to see how lycra makes the situation any worse.

Seriously, who cares? This board typically makes a big deal about function over form. That's a good thing. It's the same deal with spandex - it's supposed to make cycling more pleasant.

Personally, I make a point of living close enough to work that I can ride in regular clothes, mostly because changing twice a day would be a big pain in the butt. If I lived further out, though, I would be wearing spandex for my commutes. It would be unpleasant not to.

The gym shorts over bike shorts look is also silly. If you're that concerned about it, why not get some MTB shorts?