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It's not a 'dumb' argument, of course, it's a statement of fact. Were Oxford Street to be 'pedestrianised', it would become impossible to cycle along there, causing constant detours for cycling. Pedestrian traffic will remain the dominant form of traffic in Oxford Street whatever happens, especially with added Crossrail footfall.
I think I have said this before but that is one of the dumbest arguments against opening the area for pedestrians.
At least the car lobby has an inherent logic, we like cars so we want more space for cars.
Your is just the madman argument, I can't get a bike lane so let's choke the area in traffic.