To reveal the underlying hydrodynamic mechanism for the directed propulsion of the bacterium Spiroplasma, we formulate a coarse-grained elastic polymer model with domains of alternating helicities along the contour. Using hydrodynamic simulations and analytic arguments, we show that the propagation of helical domain walls leads to the directed propulsion of the cell body opposite to the domain-wall traveling direction. Several key features of Spiroplasma motility are reproduced by our model. We in particular show that the helical pitch angle observed for Spiroplasma meliferum, psi=35 degrees , is optimized for maximal swimming speed and energy-conversion efficiency. Our analytic theory based on the slender-body hydrodynamic approximation agrees very well with our numerical data demonstrating how the chirality switch propagating along the helical cell body is converted to a translational thrust for the cell body itself. We in detail consider thermal effects on the propulsion efficiency in the form of orientational fluctuations and conformational fluctuations of the helix shape. The body length dependence of the cell motility is studied numerically and compared to our approximate analytic theory. For fixed pitch angle psi=35 degrees , the swimming speed is maximized at a ratio of cell-body length to domain length of about 2-3, which are typical values for real cells. We also propose simple analytic arguments for an enhancement of the swimming velocity with increasing solution viscosity by taking into account the effects of transient confinement of a helical cell body in a polymeric meshwork. Comparison with a generalized theory for the swimming speed of flagellated bacteria in polymeric meshworks shows that the presence of a finite-sized bacterial head gives rise to a maximal swimming speed at a finite solution viscosity, whereas in the absence of a head the swimming speed monotonically increases with increasing viscosity.