That works against organized crime (and only until they wisen up to the practice and learn to spot bait bikes or the cops planting them) but not against people

That works against organized crime (and only until they wisen up to the practice and learn to spot bait bikes or the cops planting them) but not against people stealing bikes for a quick buck. If you're at that point in your life where you steal bikes to sell them for a little bit of cash, the risk of a bike being bait doesn't seem like much of a deterrent. It's also not scalable, which means decisions will have to be made about where it is implemented, which will likely prioritize wealthier areas over poorer ones.