Earlier quoted context omitted.
There’s no area in the world that allows e-bikes with more than 750w motors. A 3kw motor is illegal (cf Surron), unless you are talking about an e-moped requiring registration.
Listen, your world may not allow you to sell an e-bike with a 1000hp motor on it. But my world allows me to put a 1000hp motor on an e-bike and not tell anyone. Now hold my beer...
Increasing power density (of the motor) just isn't worth much when it does not happen to coincide with an increase in efficiency (and then the battery mass saved for achieving the same range will quite literally outweigh the mass saved by a smaller engine for achieving the same power)
The good news is that those striving for power density aren't really at liberty to completely ignore efficiency in the process because cooling is a key issue for them.