There's no equivalent to the Dutch department store bikes that, if memory serves correctly, were cheap but simple, low-maintenance, and better outfitted for casual riding (fenders, a light, a lock).
As the article suggests, I suspect it's more a problem of distribution. If IDEO suggested a $500 bike to be sold to casual riders at their local bike shop, well, that already exists. What doesn't exist (but could?) is a $275 steel three-speed at Walmart that's less performance-oriented than a $500 Trek but more practical than a beach cruiser.