wow, that sucks.
FWIW, i have been riding and parking on the street in the city for a few years now. I would be much more worried about someone knocking you over then about getting it stolen. Not saying it doesn't happen, but I know a bunch of people who ride and that isn't really the primary concern.
Think of it this way, you can get decent comprehensive insurance with a 500 dollar deductible for less than 60 per month. Getting your bike stolen will only cost you $500 or so. Getting knocked over can cost a fortune in dent repair/carb flooding/etc and is a much more frequent occurrence.