I have looked for a rule that suggests that bikes need gyrostabilization to drive themselves, and have not found it. It can be added easily if needed, though. I think smart tires also help, essentially being a thousand tiny kickstands.
I think it is a mistake to think of a cocoon as literally cocoon-shaped. As far as I know, there is nothing preventing it being any shape it needs to be. In this case, looking at the picture of the BMW Blitzen, it is easy to imagine a fully enclosed cockpit which makes up the shell. Now, trying to argue whether physics supports a particular game mechanic case-by-case is an endless task. I'm not going to try. I have a pretty good picture in my own head how it works, and that's good enough.
If you want to argue about the spirit and letter of the rules, look to thineself first. I've already given you the page reference in Street Magic. This is not a good road to go down.
To further explain the fiber optic cables, it's a pretty simple technology that is well-explained both in the entry under mage sight goggles (which you have found), and elsewhere in Arsenal. All you need are a pair of lenses, and a length of cable for each "window". The cable only needs to be an inch or two long to get through the cockpit. Essentially, there are lens "eyes" all around the cockpit providing a view in all directions. The tiny holes needed for the cable will not impact structural integrity.