This is the single most important reason the Segway never really took off. It makes the rider look lazy. Also, much too heavy to take with you across any kind of barrier. It's a 'last mile' solution with no idea about how to cover the gap between the two last miles.
Plenty of people wear ridiculous cycling gear (myself included) (helmets look especially dorky, but they're less dorky than being confined to a motorized wheelchair for the rest of your life so wear your helmets, kids.) so I don't buy that. (Nor did I buy a Segway, mind you.)
I think your right on the other part though. The Segway's target market is people that live and work and play mostly within a 1.5 mile radius. Unfortunately the original Segway was too expensive but more critically, far too big and bulky. The target market which stays within a tiny region are able to do so because it's so dense. But that density means that apartments (and stairwells and elevators) are too small to fit the original Segway. Nor did it fit well in the trunk of a car. Leaving very few buyers outside of Segway tours for tourists.
