From people who used the Sterling in British service, I am repeatedly told that the quality of ammunition supplied for it was so poor that you could almost see the rounds in flight, and that it would have trouble penetrating a car door.
As for bayonets, in my experience the British forces, specifically the infantry, place a lot of emphasis on the bayonet. Bayonet training is, as previously mentioned, an excellent way of developing aggression (especially since they run you ragged before you even pick one up), it's an essential part of being able to use the weapon system to it's greatest extent (after all, if you are issued with a rifle that can fit a bayonet, it might help to be able to use it), there's a psychological advantage to fitting them (it puts you in a certain frame of mind, and scares the crap out of the enemy), and because they actually have a practical purpose.
Our last bound checks when conducting attacks include fitting a bayonet just before assaulting the enemy position, because, as been mentioned, if you find yourself in a confined space with the enemy and pulling the trigger fails to produce a result, due to a stoppage, a quick thrust may be all it takes to save your life. British troops have used bayonets in combat in the Falklands, and in Iraq and Afghanistan. One incident was even picked up by the press as the first bayonet charge in decades or something, but it's a part of our infantry doctrine and we actually do it more than people think.
In fact, one of the few complaints about the introduction of the LMG/Minimi and UGL into service was that these weapons don't fit bayonets, and the reduction of the Section bayonet strength is something that is regarded as important. Indeed, rumour has it that proposed improvements to the LMG may include the ability fit an L85 bayonet.
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