Definately a topic I can contribute to. But, first things first.
I always have my ZhanChi with me (in mo pocket, backpack etc.).
I tend to avoid to solve the cube in public and I do it only if I bored at the moment.
When I do it, one of this situations occurs:
1. Someone stops by and asks me how I do it. I always answer "With my hands." But, people are usually stupid and they keep bothering me with random questions and always bring up the fact that the only way they could solve it is by disassembling it. Then they want to measure the time it takes me to solve the cube. They scramble it and usually pop it (it's ZhanChi and it's tightened really well, how do they manage to pop it?). And they freak out (much like in the post above).
2. I hear background voices coming from a group of people "I have a friend who can solve it in like one minute... HEY! HE SOLVED IT! There are some algorithms or something, you know. Blahblahblah... Didilli-doo. Blah-blah etc."
3. Someone actually tells me he can solve it. So I scramble the cube and give it to him: "Do it!" Then he moves the cube from one hand to another. "Um. I haven't solved it for a long time, but I needed 3 seconds to do it before 2 years." O.o I love this kind of i-word - s, especially when they're together with their friends, girl or any human. So they get embaressed and I know I helped speedcubing community be removing from the streets one i-word who will bother speedcubers with "fascinating" history.
This turned out to be a longer post than I had planned.
EDIT: Who would have said one 'i' word regarding the mental state of an idividual would be censored.