To be legal here the motor needs to be limited to 250 watts...............
Pretty much every country/state has it's own set of definitions for what constitutes a 'legal' ebike; there's not a big enough grouping at any power level to make specific motors for the job, with the possible exception of 200 to 250 watt motors, because a lot of countries (like the whole of Europe, for example) have pretty much settled on that sort of power level as a legal limit.
When it comes to making a decent brushless non-hub unit, then you really need to find a motor that's narrow enough to fit between normal pedal cranks (as that's probably the best location to drive through the cranks and bike gears). Kv isn't as big an issue as it might seem, because it's generally more efficient to spin a motor fast and put up with the extra mechanical losses than it is to use a big diameter low Kv motor that hogs current and gets hot.
Using a hub motor as a bottom bracket drive is one option, although 1000 watts implies a fairly big hub motor. Using a much smaller motor, like an Astro, is probably one of the best ways to do this, particularly with something like Matt's reduction drive that makes such a thing a plug-and-play job.
I can't see that using that big HK 8,000 watt motor makes much sense, particularly as its not yet really been proven to be a good motor.
Jeremy