In Minnesota, bikes are supposed to ride in the righthand gutter (or as near to that as practical). I usually comply with that. The awkward thing about it is when you come upon right turn lanes and you don't want to turn right. I ride on the line between the right turn lane and the going straight lane.
The other time I leave the gutter is when I want to turn left. It can be a challenge getting into the flow of traffic when they are used to you being out of the way in the right gutter. If it's too busy, I'll turn right on a lesser street, U-turn, and wait at the light to cross.
I think the Minnesota law is reasonable. In most situations, I don't go near as fast as the cars.