The suggestion that cycling is a fair-weather activity is hogwash.
There are huge demographic clusters (particularly late-middle-age to old, middle-aged-to-older women) who, statistically speaking, don't. I'm sure that we're off to the Proof By Anecdote races again about all the spry old folks who cycle everywhere. But in practice weekly cycling rates in places like NSW and VIC for the middle-aged are about 10%, tops, and this declines faster as people get older.
I would hazard a guess that on bad weather days, this skew gets even more extreme i.e. fewer people cycle total, and even fewer proportionally out of the demographics that don't ride much.
I don't know about Melbourne, but the idea that we should splash out Serious Cash on cycling infrastructure in Sydney (vs filling out our shithouse transit network) is just laughable. I'm pro bike lanes and better infrastructure (particularly at the expense of cars), but this 'think big' stuff is really on the nose in terms of equity of access.
The demographic that bikes are young, fit adults. Can't bike much of anywhere without struggling with hills.
If only young/fit people use the infrastructure then the infrastructure is really poor! Note than I'm from the Netherlands and comparing countries is a bit weird. Why not aim for a better infrastructure than the Netherlands?
Anyway, for hilly areas I expect a large share of people to use electric bikes. And way more care for safety. In Netherlands they think about possible safety issues. Meaning, someone on a bicycle going down a huge bridge is probably going fast and doesn't want to stop. You could argue that a bicyclist shouldn't do that, but that's pretty pointless. What's better to engineer the infrastructure in a way that deals with that. Hillier areas would require a lot of thought.
Electric bikes come at a large cost premium over that.
Low participation from a particular group != low latent demand.
I've ridden in every Australian state capital bar Darwin, and rate Sydney drivers as the most aggressively incompetent of the lot - which, combined with the spectacular hostility of the state government to cycling, is a clear recipe for low participation.
Notwithstanding which, I agree that mass transit infrastructure should be built up to the level where it is an easy choice for every commuter, and not the unhappy choice for those within reach of a station.
Yet the bike infrastructure is mostly bike lanes painted on the road and used as additional parking.