Interesting perspective, I see the logic. Our highways & freeways already work like this: vehicles that can't safely sustain the speed limit are prohibited. But our laws say the rest of roads are free to use for pretty much anyone. It's an intriguing thought experiment to imagine how it might be otherwise, but we all have to share the road - whether on the freeway with other cars & trucks & motorbikes or local roads with bicycles too - and courtesy goes a long way toward safety.
The narcissism goes both ways, such as drivers who already have the freeways & highways to themselves yet still resent sharing local roads with cyclists or others. When I'm in my car I don't mind giving the guy in the big slow truck a break when he slows down for corners, or the motorbike splitting lanes, and I don't mind slowing down or giving room for cyclists or others. It's part of being a courteous safe driver. However, this too goes both ways. Cyclists should be as far to the right as practical not hogging the center of the lane. But drivers shouldn't take advantage of that to make unsafe passes around blind turns.
With most of the common forms of disease and health care expenses related to sedentary lifestyle choices and rampant obesity (heart disease, diabetes, etc.), the cyclist is saving the healthcare system (and his own health of course).
And if he gets hit by a car he could be squished like a bug which means few health care expenses there either.