Well the motor drives the final output stage which is coupled to the Ring Gear, with a freewheel I guess.
And the pedals are coupled to the Ring Gear with a freewheel. The chain guard is important if you want to keep your pants in one piece!
The trick is they geared the motor down to human cadence, then back up again at the back wheel. That's not perfect for the motor, but I think it's the best overall when packaging is included in the picture. Otherwise you have two completely different drive mechs, which is not perfect either - harder to lay out.
I watched their production flash. It's made in a job shop, basically by hand. That's why it cost so much. They could half the cost if they ramped up the volume, got some economies of scale and less labour intensive production methods. They build Optibikes exactly the same way my work builds medical instruments.
The next step for Optibike is full blown production, like a Taiwanese bike factory, without the luxury of cheap labour.
If they get that right I may have a chance to own one one day.
The Elation kit is the closest bolt on equivalent, but it's clunky in comparison, with the exposed motor and chain. Or the Cyclone, which is clunkier again...