This is a no-win situation unfortunately I think.
London's roads are simply not wide enough to just suddenly start introducing nice wide cycle lanes everywhere.
Hence the cycle "super highways" only being 1.5 meters wide.
The only real alternative to what we currently have would be to ban all motor vehicles from certain roads and make them bicycle only, but I can't see that happening as the traffic congestion is already bad enough as it is – shutting down roads would bring the city to a standstill.
The bike hire scheme is another question… i think it could work if there are enough bikes and locations. My money is on total failure though :)