Walmart sell TVs, refrigerators, washing machines, lawn mowers, BBQs, etc, that they don't service. Heck, they sell shotguns that they don't service, why should eBikes be any different?
I have good response telling people I have an ultralite electric trailbike. I just don't make a big deal about the pedal part since I don't do much more than move my feet enough to trigger the PAS anyway. It's not like I am actually pedaling 99.5% of the time, I don't ebike for exercise, but to access public lands and get away from the city at a faster pace than walking (push bikes never interested me for long).
And if you could sell people on that aspect while still preventing the local lycras heads from exploding you would be on to something. I am CA Class 1 legal, no throttle and geared for 20mph max, and there are miles of near wilderness trails I am legally able to ride within a few miles of my home. No more getting up at dawn to load dirt bikes on the trailer and drive hours out to the desert or mountains to go riding. Sure it's slower, but it's just as technical, no less fun and I can go EVERYDAY!!