Subsidies wouldn't (in my opinion) be harmful but the real transformation is changing roads. During Covid, cities in the UK built out bicycle lanes. They were not unified joy, there are still issues to resolve here. Reddit is full of pix of them being abused by white van man parking, and stupid behaviour by car drivers and roadworks. They were temporary structures. The bare minimum to demarcate ride zones. Real infrastructure makes barriers of substance even if only kerb height. Delineates the bike zone with different bricks, with independent lights, with "investment"

But, if you look to the Netherlands, building it as tram:car:bike:people each flow direction isn't a bad model. (as a sometime Amsterdam resident 7 years ago I too made the classic mistake of walking in the ride path. You don't do that too often)

If I had an e-bike I don't think I'd change very much of my distance, but I might change frequency of use.

Some friends with e-bikes say it re-socialised riding, because before power it was totally about cadence and strength so they rode 50-100m apart mostly, a function of their natural pace and ability. Now, they ride 2x the distance, companionably, and so get the same exercise (this use of eBikes is when they are co-pedalled, its not entirely free of physical effort) but much more nicely.

Right now, ebikes lie in a space which makes them fertile targets for theft. The city hire bikes in Brisbane have made a very odd height decision, you can't elevate the seat to suit my scale. I use them but its an annoyance.

If they became more ubiquitous and if the value in theft dropped, I think that would be a good thing. Or we can cut off the hands of the bike thieves, Either works.