Is it time to start calling out bad cyclists?

I don't think anyone's saying it's right, just that's how it is. Educating the bigots is the ultimate answer, but in the short term you, as a gay, Asian, cat owning cheese shop manager being nice will make bigots think gay, Asian, cat owning cheese shop managers can be nice.

No, it just doesn't work that way. Bigots are particularly prone to confirmation bias. A nice g-A-c-o-c-s-m is either treated as an oddity/exception or seen as a nice person. Meanwhile, if somebody who vaguely smells of cheese steps on the bigot's toe, it confirms all their prejudices, This is how, for example, the myth of women being dangerous drivers survived despite the overwhelming statistical evidence to the contrary.