Yes it will assist at higher speeds Paul, but eventually the motor power would be insufficient to cope at all, and the range would drop a lot since the bike would spend much of it's time in the highest power point of the software provision.
I've mentioned in here a few times the Lafree Twist Panasonic bikes that some have added the Xtracycle extension to, a couple with SRAM DualDrives. With that derailleur combination the smallest rear sprocket will be about 11 teeth, and the hub gear part of the DualDrive reduces that when in it's top gear to an effective 8 tooth.
On the new Panasonic units, in theory that would provide power assist at the maximum level up to about 27 mph, with the assist phasing down from there until ending at nearly 43 mph, but of course the power available could not do that on the flat, although one could have some wicked fun down quite gentle slopes and astonish anyone seeing it.
Realistically I think a 16 tooth would be about the limit, and you might find that gearing would leave the bike a bit weak into headwinds and on slight slopes in top gear, necessitating more gear changing than usual. Consumption would rise again too.
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