CrinklyLion's example sounds fine to me. Keep to the roads under NEARLY all circumstances, except when it really isn't safe, and then if you do use the pavement, walk rather than ride. With very rare exceptions!
Oh, and getting off your bike if pedestrians approach is also precisely what I do if ever caught in that dilemma. Come to think of it, on paths where both pedestrians and cyclists are allowed (local park, for example), I always give way to the pedestrians, particularly if kids or dogs are involved.
As far as obeying the law is concerned... well, I've seen plenty of people (riders, walkers, drivers), obeying the law (just) and behaving like unsocial amoral morons. The law doesn't really legislate for them.
Thou shalt NOT is fine, but what I'm looking for is more people who live by 'Thou SHALT...' (i.e. not 'thou shalt not commit adultery', but 'thou shalt respect and remain faithful to thy partner'. Minus the thou's and the thy's, which are hard to type and get on your wick very quickly).
Pavements are for pedestrians, I totally agree, but if User10119 and his little lad cycle on my bit of path I will happily smile and help them past.
Allen.