An Electric Assist Bicycle is like any other bicycle except it includes a small electric motor and rechargeable battery that assists the rider at low speeds and hills. The motor cannot replace pedaling (too weak, not enough power), so there is no throttle or "automatic" mode. The assist starts to weaken at 15 km/hr and turns off at 24 km/hr, which is apparently required by law in Japan (something about vehicle classes). With one charge, the bike lasts about 20-50 km, which should be enough for at least a week's worth of riding. Unlike the Prius, it does not have regenerated braking, so the only way to charge the battery is to detach it and charge it in your house/office. When the battery runs out, it operates like any other bicycle, except you're carrying some dead weight in the motor and battery.
The first Electric Assist Bicycle, Pas, was sold in 1993 by Yamaha and cost roughly $1200 then. Since then, several companies joined the market (including Panasonic) and the cheapest ones can be found for around $500, which is still expensive considering the cheapest bikes are under $100 new.
The Electric Assist Bicycle is the perfect product for the aging Japanese demographic, but I don't see them. The fact that the prices are coming down and companies are releasing new products is probably a good sign that there are demands for them, but it hasn't reached a point where they are ubiquitous or even noticeable. However, I do live in a compact city center that is relatively flat with a good transit network. The demand may be more in the suburbs and country side.
(Most of the information from http://www.dendojitensha.net/)
Folding Bikes
Folding Bikes tend to be smaller than regular bikes (even when not folded) and usually have wheel sizes under 20 inches (sometimes as low as 14 inches). They represent a compromise between portability, comfort, and efficiency. Because of the small wheels, folding bikes are much bumpier and harder to ride than normal bikes. Unlike Caltrain, I don't know of a single railway where regular bicycles are allowed in Japan. The folding bikes were designed for people to mix bike and transit journeys. HOWEVER, I've actually never seen anyone bring their folding bikes into the subway or train. The bikes are somewhat common on the streets (they are competitively priced against normal bikes). I sense that there is a "cool" element in owning a folding bike, even though it's not entirely practical.
Bike theft isn't a major problem in Japan, and because of their abundance, the smallest lock is enough deterrent for most bike thieves.
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