> In the case of this unsafe intersection, responsibility is diffuse - it is split between driver, cyclist, local government, and the original contractor.

Arguably, the cyclist had right of way and did everything expected of them in the situation. Also, the original contractor was following the specifications given to them by local government. Therefore responsibility can really only be placed with two parties; primarily with local government as they should be designing fault-tolerant intersections, and secondarily with the driver approaching from the east.