This has been an interesting conversation! We've demonstrated that there are many different types of cycling, and situations, each with it's own unique demands, and an overlap of solutions. We also ride for different reasons.
In my case, I don't do much real pleasure-riding, unless I view my commute as a "pleasure ride"....which, come to think of it, it's usually the high point of my working day! :-) I mainly view the bicycle as transportation. I think of my bike as my "urban assault vehicle". I has full mudguards (with front mudflap), lights, rack, slick tyres, etc, as I never venture off of hard surfaces. FOR ME, I carry my "lunch box" (a soft cooler) tied to my rack with bungee cords. I stuff everything that I need to carry into the box, or the unneeded coat or rainjacket to the top of the box. I have panniers, but rarely use them for commuting. I usually hang them on for shopping. I've carried various tools home from work, when I needed to borrow them for a home project. I once rode home, then back to work, with pipe threader dies in the box, and the pipe threader handle taped to the seat stay with electrical tape. I've hauled home tropical fish from the store in a rack-top pack.
I rode with a rucksack, years ago, and it served its purpose, but I find the bike to be more stable with the lower center of gravity achieved with the load on a rack, either in panniers or in a racktop bag. As far as "looks" go, I'm an old fat guy, and no longer concerned with "stylin'". ;-) Heck, over here, some people laugh at me for having mudguards! But, those are mostly the guys who would rather load the bike onto a car, and drive it somewhere where they can PLAY with it, rather than actually USE it for a practical purpose. I'm sure you have people like that over there, too, they probably just don't frequent the "Commuter" board.
Joe