You're correct that like many new ideas, bike sharing has had it's growing pains. However, recent data suggests that it's more effective than many would have predicted.

Your article on Velib is from 2009, and while they did have a lot of theft early on, it was due to a design flaw. They've since fixed the problem and recently celebrated their 100 millionth ride. Also, theft hasn't been a problem at all in the US:

http://www.streetsblog.org/2010/11/29/theft-and-vandalism-ju...

A $1K bike may seem expensive, but they have a lot of differences from your local $100 Walmart cruiser. Our bikes are meant to last for years while being used 24/7 and withstanding any weather. They're also hardened against theft.

The financials are good as well. DC breaks even on operations, while Denver has made a sizable profit:

http://www.commuterpageblog.com/2012/02/capital-bikeshare-st...

Their main issue is high capital cost, which viaCycle solves. We can do a large city programs or let organizations install bikes on a grass-roots level, so you don't need to splash out $5+M to have reliable transportation.