Not to restir a pot that's already settled, but today while driving home, I realized I made an error and want to correct it and apologize on my earlier example from the cop stuck behind the cyclist.
Given the facts as I wrote them, yes you all are right, just go around the cyclist and continue on your merry way just as with any other obstacle/car/person/bike on the side of the road.
What I forgot was that there was a very steady steam of traffic coming in the opposite direction, so there was no safe way to cross the double yellow to give the cyclist the room required for a pass.
I am sorry for relating the story incorrectly. I need to look up my facts before just popping off an example.
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