Where else is utility cycling significant? Places like York and Hull and Gosport/Portsmouth and Boston (and various other east coast towns). One of the interesting things about Hull is that it's still really a hangover from the pre-car era, in contrast to middle-class cycling that's developed in the likes of Oxford and London.
Oxford still has working-class cycling - all wards have more than 8% cycling to work - but not nearly as much as the fifties, when half of Cowley cycled to the Morris works. Parts of Oxford certainly have the full range of journey purposes - work/education/shopping/visiting/leisure. The students, incidentally, mostly walk. However, utility cycling is fairly thin on the ground in Cowley - walking/bus tends to dominate - and the roads look as unloved as you'd expect in a lowish-density less-well-off area. Still much to be done!
I wouldn't say that utility cycling is expanding dramatically in many places - most of the feedback from the Cycle Demonstration Towns has been disappointing, but if you spend all your money on training and quiet routes, and next to nothing on adapting main roads, then whaddya expect?
Do I object to segregation on main (urban) roads: yes (except in a handful of situations where it links up quiet routes). It takes up space and money that we don't have, and pedestrians don't like it unless it's grossly over-engineered. I need to make common cause with pedestrians, residents and urbanists, and we do that by (slowly but surely) suppressing the car.