The costing is silly
I've worked in a Bike shop, and this seems silly. It simply costs too much to use regularly
£1/day works out at £365 a year (not that hard) and if you use it on a weekly basis for only one hour each of those 52 weeks (call it 50 to give you a holiday of sorts). That's a total of £415 *per year*.
You can get a good commuter bike, lock, lights and helmet, all for that money, and if you want use the cycle to work scheme, an amazingly better one (think spending up to £700 in a shop but only paying ~£400 for it). The servicing/maintenance of the bike is not going to cost £400/year unless you ride into brick walls regularly to damage the bike seriously.
I realise some people won't do the maths, but I would only consider this is I could not store a bike inside, and even in London, you can usually find a place to store a bike.
Better yet, improve your balance and get an adrenaline rush by using roller blades (OK, not for most people on the roads, but it can be done). The storage space is minimal.
For tourists this scheme makes sort of sense, but only if you're a 'casual user' which you can't be now. Not sensibly thought out. Reminds me of oyster cards that initially on PAYG would never activate to a travelcard automatically (I know they do now), which also did not seem sensibly thought out