@bonzobanana: I make no comment on the political parts of your post, which as
@glasgowcyclist says are better aired over on the NACA part of the forum. However, I'm in a position to comment on some of your suggestions.
Instead surely much better to collect these bikes and setup local workshops where they can be re-conditioned here (teaching people bicycle maintenance) and providing these bikes for free to such people.
Firstly, finding a way for people who can't afford a bike, to get a decent bike is a very worthy goal. Teaching people bike maintenance is also a great idea. Teaching and learning requires aptitude and interest on the part of the person being taught, and knowledge and ability to teach from the teacher. It also requires time; time to observe, attempt, repeat, make mistakes,
repeat again, and master a skill. Even a person with the ability to learn has to go through this process; this is why here a basic apprenticeship in bike maintenance takes two years; it's to give time to learn skills, and then apply them in different situations.
Let's say our goal is to teach one person to fix one bike; they need to understand the principles behind wheels, the braking system, the gears sufficiently to be able to make them work. It takes a while to teach someone to do this, even if you 'only' tech them to fix, say, V-Brakes, and ignore every other system.
If you then give the bike to the person for free, who pays for the replaced parts and time? In our workshop, we calculated that one set of V-Brake blocks is 5€. Fitting is five minutes or 5,40€. Replacement Brake cables are about 15€ with inner, outer, caps, et c. Fitting is about ten minutes or 10,40€. A chain is ca. 20€ and a rear block/cassette is another 15€, plus time. If the wheels aren't straight, or the tyres need changing, the cost increases rapidly.
I would calculate a basic 50€ for a bike once it was on the stand, plus 15€ for any and all used parts, plus the cost of new parts. To this you need to add, rent/electricity, and broken parts and tools because parts and tools get broken when people are learning.
It is hard to repair a bike under 100€, and the usual price for a good, solid, and well repaired used bike that conforms to German safety regulations is usually in the 175€ to 250€ range. This is a great disappointment to people who come assuming they can get a good bike for a tenner.
That's for a mechanic, and in our case a mechanic that is pretty much free for us because they're being paid by the local authority through grants or training schemes.
Now, you could say that the people are doing the work for themselves, but you need a trainer to be at the very least on hand, and the trainer will need to check the bike before it leaves the workshop. You may be lucky and have a volunteer competent bike wrench/trainer. If you have to pay someone, a trainer costs more than a repair man, and it takes far, far longer to teach someone to repair things than it does to just fix them.
We have a system in Tübingen where the town subsidises bike repairs for someone once every three months, up to 20€ for parts and 27€ for the work. In theory, we are supposed to teach the people how to do the repairs, but in practice this doesn't work. Very few are interested, which is fair enough, and we don't have the time. So we just take them like a regular customer's bike and fix them as fast as we can.
Also, I've unfortunately found that some people who are given free bikes don't look after them, trash them, and in some cases then come back assuming we will essentially rebuild it for free or give them another free bike because it 'doesn't work'.
"Free" bike rental has the same issue; bike share/hire works because you have the name and address of the person using the bike. Unfortunately, without this accountability, bikes end up in a canal. There's also the matter of maintenance, which costs money, and insurance, which costs money.
The scheme would simply work by someone selecting one of these bikes from the pile and then repair and refurbish it themselves
I very quickly decided that customers would be allowed to buy the bikes we'd repaired, and would not be able to select from the unrepaired bikes, the reason being you can't tell if a bike is fixable before you have checked it first. People picking their own bike will probably be very disappointed if the bike can't be repaired, and to give you some idea, I'd say we can repair about 1 in 5 of the bikes we get. After all, there's a reason they've been thrown away/abandoned/"donated".