Narrow indeed, and pavements wide, as originally explained when people questioned the layout. I think the compromise is right. Sadly its unlikely to stop the selfish people picking up commutors who will still just stop and block the road.
As for the utilities companies. I dont think the councils have the right to DEMAND things are replaced. But according to MH, they were indeed in discussion with the water authorities to replace the main. Sadly they decided against doing it while they had the perfect opportunity. And probably spent just as much attending emergency call outs to spot repair it.