That's a reasonable course of action as long as you have no symptoms, but if your urinary function begins to change and you start going more frequently or you are losing continence you may need to revisit the testing issue. A biopsy is one test and the cystoscopy is another. This is my father's situation.
I would also mention to your Doctor the information in Scott and Strange's posts on US and UK standards on PSA tests and ask him what his reasoning is. Just tell him you did some research on it and how does he really know that any recommended testing isn't based on false positive testing.