I disagree with your reasoning the reason people can't use bikes in cities extensively is they are to large and move to quickly to be safe to use in congested areas, whereas, this is small enough to be used in cities and has a desirable speed range.

This isn't a toy for rich or lazy people if mass produced these
could sell for about $1000 and the people that use this would be about as lazy as the people that use a car. The main reason people would use this would be the speed at which it travels (a sprint by a average runner) while still maintaining safety, ease of use and mobility.