I'm in Japan at the moment where it's the norm to cycle on the footpaths. It works very well as far as user harmony goes, but it's much slower getting anywhere and it means that cycling on the road, although perfectly legal, is much less expected. There's a different culture towards it here though too, so the concept isn't necessarily directly transferable.
You can ride on footpaths back home in the NT and you don't even have wear a helmet to do so. I'm supportive of this, but encourage proficient cyclists to use the road for a number of reasons:
A) As soon as you leave the road you leave all rights-of-way behind (yes, I know there's no such thing as "right-of-way", but you know what I mean)
B) There's a fair bit of research that suggests that you're more likely to be hit when cycling on the footpath
C) It's slow and bumpy, and often overgrown and it often runs out
D) There are often unpredictable pedestrians on it, and good on them
Here's a little video on it. It's wrong, in that you cab cycle on the footpath in other places other than the NT, but otherwise it's convincing.
http://www.youtube.com/watch?v=Q08bxjat1P4&feature=youtube_gdata_playerSent from my GT-I9100 using Tapatalk 2