One hundred years ago all motorcycles were motorized bicycles. Belgium and the Netherlands are flatter than north central Pennsylvania. Just advocating a lynching can be a federal offense in North America with serious prison time involved. An exhaust recirculation pipe will go a long way to reduce HC emissions and improve efficiency for a two-stroke engine.
If you are going parts yard tech, look for 4130 CrMo frames and aluminum rims. Caliper brakes can be fitted with the longer mountain bike pads. Braking from speed (1/2 g) with a fairing may be tricky. My experience with inner tubes is they break down when exposed to the elements. Try some neoprene foam or gasket material.
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