Not to forget the advantages of ten times less road maintenance, ten times more throughput, ten times less parking requirements, more social contact, ten times less energy consumption than an electric car, and on and on.
The main thing I've noticed here in slightly hilly Leuven, Belgium, is that so many more people I would never have seen on a human powered bike will actually use ebikes.
If you're a believer in government steering citizens to make the right decision, stimulating ebike use certainly makes sense. If in doubt, you might want to think about the war going on with one of our main energy suppliers.
I would have thought an e-bike would actually have more use in Devon, than in a relatively flat city like London.
I imagine a government would want to prioritize the highest impact action.