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in london there just is not the space.
I'd argue it's simply the former you've mentioned is the main reason and always turn out to be more of a abstract conception than an actual cycle path.
CS7 - Abstract Conception.
No matter what mode of transport/ethnicity/disability/class/etc., segregation is never a good thing.
building a segregated system for cyclists is difficult - it will take £billions and take years to achieve.
in london there just is not the space.
20 mph involves some paperwork = road traffic regulation, some public awareness and some signage. IMO much easier.