You (and I) ride a bike for transportation. Unfortunately, in many - if not most -cases those in decision making roles do not ride bikes much, if at all. They only view the bike as a recreational item.

although the bike share program in Nashville is much better than what you describe, our infrastructure still follows the recreation only mentality. I'm not being critical here but I tend to think that most of the advocacy comes from the recreational groups and clubs - so that is reflected in implementation.
( my $.02)