This concept has already been very popular in Europe for many years. http://www.nytimes.com/2008/07/13/world/europe/13paris.html

What you lack is an understanding of the most common use case. I want to ride a bike 3 miles away from my home, but I don't want to worry about finding a place to lock my bike, take the risk of having it stolen, and I don't want to have to retrieve my bike before going home. I've been waiting for this system to migrate to LA since I saw how well it worked in barcelona 4 years ago. I think it's a great concept, and furthermore it would be impossible to implement without government approval because all the docking stations are on sidewalks.