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Frank has it right, the drivetrain (chains, jackshaft and gear reduction system) always turns with the wheel which causes considerable friction/resistance when pedaling with motor off.
The centrifugal clutch will let go only when it stops spinning and the springs can pull it back, which occurs at idle speed. So you almost have to come to a stop before the motor is disconnected from the drivetrain.
This is a very simple, inexpensive drive system. However with a freewheel on the wheel, it would allow the motor to be shut down for coasting, and there would be far less resistance when pedaling.
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