It doesn't really prove it at all. Because there's so few segregated cycle lanes (I live in a part of town that has some, but they're only in certain places along wide, higher-speed roads), cyclists just mostly stick to sidewalks. This causes lots of interactions between cyclists and pedestrians, which has led
directly to the requirement for liability insurance that I mentioned before, because of so many pedestrian injuries.
Basically, cyclists have a choice: take roads and risk getting hit by cars, or take sidewalks and risk running over pedestrians. The risk to the cyclist is FAR lower with the latter, so that's the rational choice to make, and that's what they've done. Getting hit by a car is easily a death sentence; hitting a pedestrian can cause serious injuries, but that's rare, and usually the risk is to the pedestrian.
If you really want safety for everyone, you need to separate all 3 modes of traffic. It works ok here much of the time just because people are tolerant and non-confrontational, the car traffic is rather low-speed (unlike America), there's no that much car traffic in the first place (no place to park! So much of it is taxis and delivery trucks), and a lot of the streets are really narrow (also leads to low speed for cars).
Personally, I stick to sidewalks unless there's a cycling lane, or the street is so low-traffic and low-speed that I feel safe on it. So little residential back streets are fine, but the big boulevards, forget it.
IMO, I think that, at least in my area, they could do better just by painting cycling lanes on the sidewalks, and educating people to use the appropriate lane (cycling lanes for cyclists only; too often I see careless people walking in the clearly-marked cycling lane), and also by widening some of these sidewalks where possible. They could also stand to put some of the roads on diets to make wider sidewalks and cycling lanes. Maybe levy some more parking taxes to pay for it.