Without a doubt, Dewey is my favorite on aesthetic theory. But your quote is a good example of his main point, art depends on context of the object and the user/viewer/"experiencer" of the object. While there are those who feel the contrary, in our current culture, a bicycle is not art. It "could be" art, but it isn't. And most definately, the 1,000 critics in NYC who are the world's arbiters of what is art or not, would not consider a bike as art.
Just out of curiosity, is your citys new statue art? I have talked with some who maintain it is. Some who think it isn't. And a few who just got all sputtery and refused to or became unable to talk. But the subject is a cultural fixture. I got a lot out of Dewey, But taking something out of something involves what you take into it. I see a brick wall and I see art. Not the art of bricklaying, but the art of human hand, and patina. And if the right person where to take a peice of that wall and put it in a gallery in NY, with the right conceptual BS most of those 1000 critics would buy it hook line and S.