If you're uncomfortable with the idea of being on private residential land, there is another strategy I use really often. Apartment complexes, strip malls, and office parks all often have a patch of woods behind them. No one really uses these spaces, and even if someone notices you, it's likely to be the Blockbuster employee or the apartment dweller who doesn't really care.

A stealty-colored hammock really does make things easy. Among other things, you can camp on very steep land, which I often find right next to the road. Nobody walks through those areas. Sometimes I camp within sight of the road, but no one has ever seen me because they aren't looking. One thought though; your bike itself is pretty reflective and can give you away if you're in an area where headlights will sweep. It's easy to be paranoid. Just remember that no one, even the most bored police, are driving around hunting for bike tourists sleeping on the cheap.