Hi, I am from The Netherlands. Based on my experience in my country I have the following to add.

The main issue you have is a chicken egg (network effect esque) lack of bicycle drivers.

Once there are enough you can defend their rights (safety and accessibility) easier. Safety is first for bicyclists in The Netherlands. Hence no helm necessary. E-bike go pretty fast though and with elder people preferring these, amount of bikes may increase.

There are several solutions to this problem you described each with their drawbacks.

You can speed limit. For example to 30 km/hour. Aldo increases safety for playing kids.

You can disallow parking. Variations are one side or both sides, time based parking allowed (e.g. at night OK), allowed to stop with engine running, and possibly others.

You can repurpose the road to a one way street. There are two variations on this: with allowing bicycles one way and with allowing bicycles two way. Another variation is not allowing bicycles at all but I cover that later.

You can broaden the road. Not always viable, especially in city, but you be able to combine it with repurposing the housing.

You can make the road for bicyclists only. Do this too much and car drivers will complain about accessibility.

You can disallow cars in your city with too high Co2 emissions.

You can disallow bicycles. Useful at highways, near highways, or at choke points.