It also permits the interpretation “We see the use of the internet in many places.” On that reading of your sentence, the internet is the complement of being used. This interpretation wouldn’t be appropriate in the context where the next sentence was “It’s become more widespread than newspapers,” but it would if the next sentence were “It’s an engrossing pastime.” To see the difference, contrast these examples’ antecedents of the word it; in the former, it’s the internet, but in the latter, it’s the using of the internet.
Likewise, @JamesK’s sentence could be interpreted to mean “I saw Sally’s performance at bike riding.” This interpretation would be appropriate in the context of responding to a comment like, “Sally seems to be having some problems with her balance lately, had you noticed?” where a reply might be, “You know, I saw Sally riding her bike, and now that you ask, yes, there was an air of uncertainty about it.” Note that the antecedent of it is riding her bike.