Sorry guys - had to weigh in after Lester's question...
There are so many points it's not funny!!!
1.) Notice that the wheel is held in a tract way (assumed on bearings but magnetic rails or segments would be the lowest friction method (thing mag lev train) but i don't know how that may effect a motor but it's a valid point for research.
2.) Notice the small drive cog in relative terms... this is in effect a great reduction of and unto itself and would make the use of higher power, higher kV or even lower power but higher kV motors from the RC market without too much (if any) reduction
3.) Please note the drive gear/cog location? It's at the top most point (of the wheel), let me ask you, how much ground clearance does your normal bike have for the chain? Surely not 26" (approx 24-26 for a 26" bike). This location is also prime for a first stage belt reduction above it and above a fender (if needed even) - a design like this would have to be custom (or Aussie Jester) frame and all but... it would be a great platform for high kV/RPM inrunners and in all conditions (12" of snow is nothing when the drive component is 20" high and the wheels are covered (fairing hubcap, etc) to protect them. - Really they would be hub motors of a kind with the drive gear located atop the wheel instead of the center.
4.) Looking at my mountain bike, I can already see how such a wheel could be integrated with simple frame clamp on mount system or have the wheel come with a std 8sp internal gear and a through axle for quick release hub - that would solve the problem of equipping the higher end bikes (front or rear really) with simple bolt in kits. (this may have been done already but not to my knowledge).
5.) Personally I know I prefer MAG style wheels for 20" and if they could be done properly (billet 3x3 arm) for 26 in magnesium then the weight would be moderate to light and the strength for 26" bikes (lacking in mags now) would be there.
6.) Maintainability - ever try to service a hub motor internally?, this would be simple as removing a shield then the burnt motor (or controller) and replacing them - forget serviceability, think UPGRADING in a plug and play fashion with the RC motor industry.
Okay, sorry but i saw this and had to put it out there - will it catch on, probably not but in my humble opinion it should - it's an elegant design and could be aplied to solve many of our current technology issues with eBikes.
-Mike
PS:
I do see issues (possible) such as:
1.) How much torque can one of those drive systems handle - can we use off the shelf or is this back to fabrication 101 for even the drive tract? If we have to fabricate even down to that level, I think its too much for now.
2.) A fully sealed wheel (fairings like a motorcycle) even lexan would provide some protection from water, rain snow and debris) but is it even needed, what are teh effects of teh elements on the drive system if they experience rain or snow, slippage, etc?)
3.) Is it patented (with a valid and correct patent - meaning it's so obvious (actually is no more than a simple inner drive gear, not rocket science and ive seen plent of really close art - back to popular mechanics from the 60s)?
and one more plus:
Assuming a 20" wheel with a rim inner diameter of 18" if the drive is 1" diameter (I know it has to be larger for wrap (tensioners) then would that not be an 18:1 reduction so a motor / voltage combination running up to 6048 RPM under load would indeed provide full 20mph (18 gear inches in a single step!) - Here we only need chage the drive gear and tensioner to adjust the maximum speed the motor has been geared for... very simple really and considering a motor mount possible anywhere but the traction point of the tire (higher up is better for weather riding, lower for weight distribution).
Well... I am actually done now... sorry for the rant but this thread has been inspiring!