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The G1 Insight is a parallel hybrid, and the electric motor cannot drive the wheels without spinning the engine too. It's basically a replacement for the flywheel.
From what I can gather, the factory programming regens more at low RPM and assists more at high RPM, making the engine "feel" bigger than the 1.0 I3 that it is; You end up with assist when you're getting up to speed, and regen once you're cruising in high gear. It also gives more assist in first and 2nd gear even with the same throttle, since the engine is pretty gutless and relatively easy to stall without electric assist.
Making changes to Honda's IMA system seems to be pretty hard to do without throwing a bunch of lights on the dash.
It's hard to answer you without more specific questions, but I understand you probably aren't yet in a position to know which ones to ask.
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