Whenever I go to DC, I always notice it has a lot of bicycle commuters, so it surely must be do-able. I have heard some folks say that the streets are in really bad shape in DC which makes bicycling difficult. That seems to be true.
Downtown DC looks like a very good place to bicycle because all the other methods of transport are so terrible. With all the anti-terrosim barracades today, you can barely get around by automobile.