I still think if you reduce it to one lane between Wales & the Sutter Middle you will create problems for Duchow & School St. if it creates a backup. If the city does something to discourage cut-through traffic onto residential streets, then it would probably work.
As noted in Howdy's post, people already duck out at Montrose and/or Wales or Glenn and race up School St./Wales/Glenn to avoid the mess.
The complete streets concept is worth looking at, but the area is already walkable so what are we trying to fix? I tend to walk as the crow flies, through parking lots and along storefronts. The biggest problem is crossing East Bidwell at the intersections. In fact, I believe those bicycle/ped accidents were at crossings and those statistics didn't say who was at fault. (There were two bike/vehicle accidents recently in the crime log and I believe both were in areas that have bike lanes: Oak Ave. Parkway/Folsom Auburn and Blue Ravine/Turnpike).
I do agree East Bidwell isn't very bike-friendly between Blue Ravine & Coloma, but Riley is a very viable alternative, as well as is School St. or Duchow and are already used by cyclists very frequently. In fact, a majority of the cyclists also ride as the crow flies through parking lots, and, frankly, most of them are carrying large bags of recyclables and are just going down Glenn (also not bike friendly but isn't being addressed) to get to the Walmart parking lot.
I don't think any of the businesses oppose a roundabout at the end of EB Street where it meets up with the middle school, but then what happens when it meets up with Riley? That's already a problem area. How is this going to work with whatever the school district has planned for a reconfigured pick-up and drop-off for buses and parents?