Your society would look very much like China does now with its thousands of bikers.
I seriously doubt that the "Quality of Life" would be improved. Suberbia would crumble and fall as people moved closer to their places of employment. (There are people that drive 30/40/50 miles one way to work. They won't do that on a bike, and the factories are not likely to move to them.) Cities would have to be rebuilt with bigger and taller apartment complexs; murder and suicide rates would sky rocket because the ensuing congestion of bodies would eliminate all sense of freedom. There would be no more open spaces or areas for them to get away and relax.
The stress and tensions would just be horrendous.