Yes, people lock their bikes: they all have that built in wheel lock thing. It's not like it's a perfect utopia. People are actually very careful about that. Nobody rides around with the giant NYC-style bolt-cutter proof chain like a belt though. You couldn't even
have a $1000 bike in NYC but you see them all the time here. There is definitely
some theft and crime but it's definitely less.
Also, the biggest bike thief is probably the city. ;-)