A more capable EMTB is better than a less capable EMTB. If you don't need higher peak powers. Don't buy it. Just like you don't buy a 200mm travel triple clamp fork if you don't need it. But what you don't do is start putting regulations, just because not everyone uses that requirement.
Here are the current EU regulations, which Australia also adheres to.
Key EU E-bike Regulations:
- Power Limit: The motor must be limited to a continuous rated power of 250 watts.
- Speed Limit: Motor assistance is only available up to a speed of 25 km/h.
- Pedal Assistance: The motor must only be activated by pedaling, and the assistance must stop when the speed exceeds 25 km/h.
With a continuous rating of 250 Watts. You are not going to be able to have unlimited peak power. Because the higher the peak. The lower the trough must be. So let engineers design the best power profile to give the bike the most capable operation for what it is being used. The regulation of power limit has been created. It's 250 watts continuous. There is no maximum. There doesn't need to be a maximum.
The peak power boundary will be governed by how the bike performs, when you factor in that the power profile required to meet the 250 watt continuous power regulation, requires for more power above 250 watts. You need more power below 250 watts. That's just Physics.
A EMTB that goes from a ridiculously high peak power, to a ridiculously low trough power to meet the 250W continuous power regulation, would be useless. It would be like riding a kangaroo. Not that I've tried ......