If someone's wallmart bike with a 1200w aliexpress "push button" motor end up injuring/killing someone (due to undersized brakes, snapping chain, &c.) I'm sure a great deal of people will care about them
And you're also over-estimating the number of people who will care when that conversion happens. Because odds are when someone does have a mechanical failure and mow down an elderly lady it will be preceded by a bunch of stupid decisions not having anything to do with that mechanical failure and contrary to what you may believe based on HN/Reddit/Twitter commentary, the general populace is well aware that you can't legislate away stupid.
And as others have said, there's a mechanical aptitude bar to entry for using those kits that make them less common than you're implying they are.
If i understand bike law correctly, for offroad biking you can use anything, but ofcourae if you rig together something stupidly dangerous and cause an accident, a court will take dim view of it.
Does the motor work if you're not actively pedaling ?
Does it make more than 250w ?
If you answered yes to any of these you need a valid driver's license, an insurance, a plate and mandatory helmet.