Completely agree. They should probably just remove the pedals and generator entirely and save that weight. But then legally it becomes a scooter and probably would require a license and be more limited as to where it could go.
But what if the pedals are connected to the wheel only in a "symbolic" way, say, some electrical contact or something? So technically you still have to pedal to qualify as e-bike, just without real mechanical transmission? And if you lose power bad luck, don't commute with an empty battery...