I'm a pretty active cyclist so here we go:
Lactic acid is what makes your muscles burn when you work out too hard. It also maikes them swell, as well as also reduce power output. Now, as you work out more, your threshold for lactic acid goes up. I know for me I actually get exhausted before my legs give out anymore.
As for where lactic acid builds is another thing...there are two schools of cycling, spinning and mashing.
Mashing is what most bike riders do...just push down on the most forward pedal. This is grossly inefficiant.
Spinning is where you use either toe clips or clipless pedals (think ski bindings when thinking of clipless pedals), which allow for you to also tranfer power to the pedals moving up, and even front and back when using clipless. Spinning is also done at far higher RPMs than mashing. I spin around 70rpm for most terrain, and reach up into the 100-105rpm range when sprinting.
Basically Lance was an exceptional athlete way before his stint with cancer. He actually had a mountain bike history beforehand. Some of that skill shows the few times he has taken his roadbike off-roading
Pretty much any pro cyclist is just obscene in power, endurance, and reflexes. Eddie Merckx, who is quite possibly the greatest cyclist of all time, is still a prime example of this...he's 60 now and still one heck of a cyclist. He also posesses more records than any other cyclist in history, even after Lance broke some of his. These guys are pretty much all genetics.
BTW Lance was also the guy who made high-rpm spinning popular...until him, most roadies spun at 50-60rpm.
The bike doesn't make much difference at all. So long as it can effectively get the power to the road, and is reliable, it's good enough to race on. That won't stop racers from experimenting though to get whatever gain they can