You don't necessarily need that kind of power. My hybrid has a 300w geared motor (better for low end torque) and I can tackle big hills. Oh, it wipes me out, but I get up them without stopping, and the motor can take up the slack once I get to the top.
I'd expect a 500w geared motor would likely be able to climb said hills with little work on my part. If you went mid-drive, the steepness/length of the hill wouldn't matter...you could just gear down until the motor could keep up, whatever it's output.
OTOH, if you're going gear-less, yes, you might want a big motor. At ~800w, with small "moped" wheels/tires, my other electric "bike" with its gearless hub can only just get me up the steep hills, losing momentum. I can climb said hills quicker with my geared hub and me pedaling, unless i hit them at full speed and they're not too long.
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