I now regularly use my commutes to get in a longer cycle and shower at work. Showering at work actually makes navigating the toddler chaos at the home end simpler :P I didn't use to shower at work and wore mtb baggies but have progressed over the years to almost invariably lycra-clad (albeit with legs so hairy it looks like I'm wearing a badly-knitted woolen baselayer).
For general getting about, or work days where I need to visit another site and won't be able to change, I wear normal clothes and use the flat pedal hybrid.
I like lycra, it's like I'm cycling naked with my junk cradled gently but firmly by a troop of angels.