I'm just new to cycling myself. I have to travel 10 mile to work everyday and decided to sell my car and my motorbikes are off the road at the moment. I bought a GT Zum S2, it's a sub £400 bike but I bought it as it's all I was willing to spend for something i was "trialling" but also wanted something reliable for the commute, if I decided to go stick with it. Fact is, having not done any cycling for years I covered 53 miles yesterday on my first run out. I just kept riding as it was a joy and never really found that with cycling before. If people did by "better" bikes they would indeed find joy in cycling I would say- I know I've certainly got the bug now and already looking at more expensive bikes with better components etc.
Around here I rarely see quality bikes, most people have cheap full suspension MTB's and all the teenagers run around in BMX's. On occasion I do see some dedicated riders with really nice bikes but that can be a rare sight.
I think there's some degree of mentality that people think you're poor or can't afford a car just because you cycle. Some just think you're nuts. There's too much focus on "class" in the UK in general I think.