I had two accidents during my 5 years of commuting, and both times I only got minor scratches and had to replace my shoes. Both happened at speeds a determined bicycle rider could achieve, but I suspect I wouldn't be as well protected on a bicycle (both the machine itself and the protective gear tend to be much lighter there than on a moped). If I needed to do that again, I'd buy a model with two wheels at the front, which would have prevented both accidents - though I'm not sure if added stability wouldn't encourage me to ride faster.
So it's pretty specific, but if you're somewhere where driving culture is not too cutthroat, the roads can support single-track vehicles, and the traffic rather than actual distance is the limiting factor - owning a bike can be an objectively better option.
I've always thought it made more sense that instead of large metrobuses the local transit authority operate more like a locals-only taxiservice – similar to their already-existant handicapped-access services (which send a solitary transport driver, with ramped single-occupant van/vehicle).
If every scooter rider in Taipei had a car, the city traffic would move a meter a day.
It's also about convenience, btw, not just cost. It's basically impossible to park a car here. Scooters are also difficult but at least possible.
A huge chunk of people here just take public transit now, as it should be.
This makes everything so far apart as to make walking inconvenient. Add in unbearable weather for half of most years (whether hot/cold), and it just isn't convenient to grab something "on a quick walk" from the grocery store that is miles away from most homes.
Thankfully (some) cities are beginning to realize this, and are changing (IMHO: stupid) zoning/regulations. My favorite example has been of my own hometown's (Austin) reduction in required parking spaces for most commercial activities. This increases density, and encourages more walking. ATX's buslane-onlies leave a lot to be desired... but at least they've gotten rid of (most) downtown oneways.