TFA says the wheel weighs 13 lbs, which is a ton,
Did you work on the Mars Climate Orbiter?
Barely. The wheel only rotates twice a second, and they are keeping the weight close to the hub. The rotational energy will be small, and recovered by regenerative braking or coasting anyway. It really does not matter.
Unsprung mass is not much of an issue on a road bike either. Total mass is what counts, and this wheel _will_ make the bike more difficult to carry, e.g up stairs.
Also the topping out at 20 MPH is a little low.
Really? That is faster than the average speed of cars in major cities. (Or minor cities at commuting hours.) And most cyclists would need a _very_ good tail-wind to maintain that speed on the flat on a regular bike.
There are good reasons to limit the speed: (aside from local regulations)
- safety (bike and rider's clothing are not designed for high-speed spills),
- battery life - power is proportional to the cube of velocity
- motor efficiency - designing a motor for higher speed will make it less efficient when it is really needed - hills and headwinds. Remember the motor has only one gear.
but it would be nice if the top speed could be upped just a little, maybe to 25 mph.
You are talking about an electric motorbike or moped, not a power-assisted bike. They do exist.