Exactly. And in a hilly/mountainous area, you get a bike with multiple gears (21 gear bikes are not a rarity even in the north german plains where I live) or with electric motor support. If you need to get a lot of groceries you either do groceries more often or get a cargo bike. For bad weather there's clothing.

Nobody says a bike is perfect for everyone. But the vast majority of people live in urban environments and don't need to haul tons of cargo daily. Bikes are a piece of the puzzle and if only those people had a car who actually need one often it could be a huge piece.