A large part of e-bikes' nice features is the fact that most of them don't weigh much more than a heavy mountain bike does, so you don't tire yourself out pedaling with them. The range figures are based on a full run at X speed without user input.
The problem I definitely see with that particular design is that you can't recharge while coasting by continuing to pedal, since it's a friction design and it appears that the motor isn't attached permanently to the wheel. You could fix such a design flaw without too much trouble, but it's another one of the reasons I wouldn't pay $500 for one. Why pay that when I have to "fix" it?
I actually have most of the stuff I need to build one right now, except the battery pack. I'll probably use a motorcycle AGM battery for it, if I actually go forward with it.
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