My participation in the last few critical mass rides has made me realize that the bicyclists are winning:
The police have stopped handing out fliers with misleading interpretations of the law. They probably realize that the fliers just end up getting used as evidence in court, mocked by bicyclists, and taken home by tourists as souvenirs illustrating how incredibly backwards New York City has become.
The police no longer use orange nets to shut down all traffic (car and bicycle) around union square at the start of the ride. They probably realized how ridiculous this looks to the people and media watching the pre-ride rally in Union Square.
The police have stopped caging in Union Square with steal barricades. They probably realized the futility when riders started showing up at Thompkins Square, Madison Square, Washington Square, in addition to Union Square.
An arrest support organization has formed (Free Wheels). They provide moral support, food, drink, and even replacement bicycles to those released after the ride. This mitigates the intimidation of the arrests and lets the courts decide punishment. Prior to this the police had been relying on the loss of a bicycle to several months of “arrest evidence” as a punishment for riding in critical mass.
The bicyclist interaction with the public has improved. I see many bicyclists explaining the ride to bystanders, handing out fliers, even giving onlookers cookies.
What else do we need to do?
I'd like to see more decentralized organization. I've begun bringing a GPS to rides so that I can have a better record of where I was riding. This may come in handy in court to prove the time at which I was at various spots along the spontaneous route.
We should revive SMS coordination. The police already know where we are via helicopters, secret police, etc. There is no reason why we shouldn't know where we are.
We need to make better use of tourists. The police will continue to interfere with the ride for the time being, but we can make sure the interference happens in front of tourists by riding around midtown and other densely populated areas.
We are very good at traveling faster than car traffic in midtown. This leaves most police vehicles stuck in endless midtown traffic. We can make use of this by continuously crossing through dense traffic. It also helps demonstrate the efficiency of bicycling in the city.
We need to work hard to make sure the leaders (Smolka, etc.) have complaints about this on their records forever. They should not be allowed to work in law enforcement after the dust settles. They are criminals of the worst kind and a danger to descent people everywhere.

East on Astor Place:
Bicycles being confiscated after arrests at 7th Ave and 18th Street:
My route (determined by GPS):
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