Using space efficiently
Lots of cities in the US and world are installing bike sharing systems, often placing bike share stations at transit stations are. These compliment bus, light rail, streetcar, etc. systems quite well because transit users wouldn't have to buy a bike and take it on the bus/streetcar/whatever with them.
While you may not want lots of people in a small residential neighborhood, you do want them in downtowns and commercial areas. Biking and riding transit allows you to have more people in these spaces beacause they use the space more efficiently. Take a look at this picture that shows how many people can "fit" when using cars vs buses vs bikes:
Here's an interesting article from Streetsblog that directs attention to some of the growing pains the Capital Bikeshare system in Washgtion, DC is experiencing. In an attempt to expand the system, they are meeting opposition in Arlington, VA. The bikeshare system needs to occupy 3 parking spaces in order to install a bike station, and the local government is concerned that, since no one will be able to park there, the overall amount of people in the commercial area will go down.