One of the most interesting and effective bike locking methods I've ever seen was built by an engineering student I was in school with - he'd had three bicycles stolen in three months - all by cutting his chain/cables.
So, he bought an older bike and stripped it to bare frame, then put a case hardened rod through the top tupe that inserted into a socket he formed in the fork stem; same thing ran down the seat tube to the bottom bracket and engaged the crank, when extended. Both rods were invisble inside the frame tubes - just under the seat he put a cylinder with a keyed lock in it - you straightened the forks, made sure the left pedal was at the top, then turned the key. Both rods would extend, and it was impossible to pedal or steer without unlocking it.
Three times after that he had his chain cut, each time he found the bike within a 100 yards.