She was wearing a helmet and she left a nice dent in the side of the car. She came out of it stunned but alright. I doubt she would have had the same outcome had she not worn a helmet.
I don't think I have an anti-bike bias - I don't own one now, but I rode for years and the only motor vehicle I've owned was a motorcycle; I don't like driving a car unless I have to.
Was the student going down a hill? I'd have to be facing some major deadline to be going 25mph on a bike on a straightaway.
Unless it was seriously down hill or with a serious tail wind, and she was extremely lucky, I bet she wasn't doing 25-30 mph.
I think that bet is safe because the world one hour record for women is about http://en.m.wikipedia.org/wiki/Hour_record#One_Hour_records_... 29 mph.
Also, a bicycle helmet doesn't do much good in a head-on impact at 25 mph. It only gives you a few mm of deceleration distance. So, if the impact was at 25mph, that dent in the car likely did way more for her than her helmet.
But it's not a tradeoff. Cycling rates have skyrocketed over the last 5 years in SF and NYC, without any real change in attitude towards helmets. We can thank bike lanes.
The car analogy doesn't hold water either--the most effective safety device for cars is the seat belt. Nobody thinks seat belt use is a sign of a risk-obsessed driver, and likewise, wearing a helmet doesn't mean you treat biking as a risky behavior. In both cases they're just sensible precautions for a common activity.