Though I've been a keen cyclist all my life, the Highway Code, I believe says we should give way to pedestrians? You do get automatic insurance if you join the national organisation, Cycling UK, used to be CTC (Cyclists Touring Club).
Phones and similar are disastrous for our modern age. A friend broke her shoulder when a pedestrian walked out in front of her bicycle without looking because he was on his phone. She's become permanently disabled as a result.
How many accidents are caused by phone use? My DH was on a speed awareness course and came home saying that at least half the room were there because they'd been caught using phones while driving. What really shocked him was the sniggering that went on behind the trainer's back. No one thought their phone use was a problem.
It's bigger than this simple case and bigger than 'cyclists as a potential problem'. How it gets tackled though I'm not sure.