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I got a chance to use one of these in Destin, FL a couple weeks ago and had a great time cruising down to the beach and exploring around.

It was fun to be "walking" while riding too. They're really pretty cool.

Is there really a market for this? Why would you want this as opposed to a regular bike?
Looks like a novelty item.

That said there's someone who commutes past my house regularly on one of these: http://www.elliptigo.com/

Pedals as a transmission have been the dominant model for a long time. It is interesting to see some novel ways to hook human power into a machine to go faster. Thanks for the link.
I don't get it. So the battery powers both the wheels and the treadmill or is the treadmill generating electricity?
It says electric assist, which suggests that the treadmill moves the wheels, and the electric is just a boost.
If you were looking to exercise, wouldn't you just ... ride a bike? And if you aren't looking to exercise, why do you want to walk on a treadmill while riding an e-bike?
I thought one of the main benefits of riding a bike was taking the load off your hips/knees/ankles. Which this bike mostly negates. Plus it's probably pretty expensive, given it's an e-bike.
It also looks like if you took a turn too sharply the corner/edge of the treadmill could catch/scrape on the ground. Could make for a nasty fall.

The same thing can happen on bikes, but you can prevent it by orienting the pedals correctly.

the fitness aspect of this seems very questionable

a normal bike (even an eletric one) can give you a better fitness-friendly way of getting around while also being easier on the knees

for that price I cannot see how anyone in their right mind would choose this over a nice commuter that you will actually be able to repair on your own compared to this proprietary mess where I cannot even see a full detail shot to identify the components used

i think and hope this product is destined to fail