Since essentially all you are looking for is to conserve power, and you are going to limit the total amount of power you want out of the motor anyway, you would be best to pick a motor designed to only ever output that much to start with, at the RPM you typically expect to be at when needing that max power (meaning, up a hill, probably, since you're not wanting it for startup acceleration). It's more efficient (AFAIK) than using a much larger motor to far less than it's potential. (it is certainly *safer* to use a larger motor under it's potential, in that you can never overheat it, but not likley more efficient).
For that 7A you previously mentioned, you won't need more than a 6FET controller at most; a 12FET is much larger and likely more money than you need. The 6FET will start with a lower current limit anyway, making it even easier to modify downward to 7A. It can be done physically by removing shunts, or by programming it. If there are three shunts, well, many 6FETs are only 20A controllers, so removing two shunts would give you about 6.7A limit right there. If only one shunt, you could either unsolder one end and solder two more shunts in *series* with it, or shave out 2/3 of it's thickness. Programming would be easier than any of that.
Same with motors--you don't need much of a motor to only pull 7A max. The 9C 2807 on CrazyBike2 takes about 7A to hold me at 20MPH, IIRC, without pedalling, with a nominally 48V LiFePO4 pack (actual 52-56V in the most usable range, IIRC). But that's a lot of motor for a bike that's heavy/big and no pedalling, whcih takes 60A+ to accelrate from a stop. You don't have nearly those requirements, so you don't need that much of a motor. Either a small DD or geared hub would do for you fine, in the 200-250W range max.
If you already have a Cycle Analyst, you could use it's current-limiting features rather than those of the controller, so that you can change them "on the fly", for experimentation and dialing things in while out riding, rather than havng to come back to the workbench to change the controller settings (electronically or programmatically).
I don't think you're going to get any more power at low RPM with the larger motor/controller than a smaller set, because your amp limit is the same. If your *wind* is different, then yes, you might, but it doesn't necessarily have anything to do with it being a "bigger" motor or controller (being capapble of higher total power). It probably would not be more efficient, either, but rather less so, as Liveforphysics mentioned (core losses/etc.).
As for being "assured" that 70% (or any particular number) of the power from the pack makes it to the ground, I'm not sure it's possible to guarantee that, with just a current limit. It might be more complex than that, but I am not a math person

so I'll have to leave that to someone else to help with. It doesnt' "feel" like it would work that way, though.
One thing also to think about, is that for best efficiency, you want to pick a motor that is designed to operate at the RPM (and voltage) you want to be applying most of your power at. This also means it's BEMF will be optimal for that RPM and voltage to help negate that current, ensuring less power is simply wasted as heat. (I think...again not the math guy)