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Many are using bicycles not by choice but because they're broke. And it shows when you see the kind of bicycle they ride.Maybe in your place.
In my place (a big city in Belgium) people just use whatever bike they have that works and fix it up from time to time, but as long as it rides few people care how it looks. Especially since less shiny bikes don't attract thieves as much (although this isn't a big problem here).
I use my bike because driving in traffic is longer and the trip to school with the kids and back home would take 20-30 minutes depending on traffic, while it takes almost exactly 15 minutes by bike (with the kids in a trailer).
I use one of two bikes depending on where I parked my car (which I use once or twice a week to go to places with bad public transit. Otherwise it's parked somewhere within a 10 minutes walk radius, wherever I found space) and one of them looks like I fished it out of the river, the paint is gone in many places, but it's lighter. The other looks nice but it's quite old and heavy steel so I tend to use it less.
I also use my bike (the heavy one, I figure if I want to do exercise, the whole point is to do some actual efforts) for 50 to 100 kilometre round-trips, although less so these days, it was nicer when I lived closer to the countryside between France and Belgium.
But the most important thing is I hate the noise of cars in the city. I want to be able to walk with someone and talk in the street without having to shout or stop while a loud vehicle passes. I don't care about cars themselves, after all they're on their streets doing their things, if they take twice as long as I do to get somewhere it's not my problem. I just want their noise to be gone.