In fact many are very capable on hills Melvyn, but it's one of the perversities of life that e-bikes seeem to be far more popular in flatter areas than in hilly ones. The classic example is very flat Holland where e-bike sales are the highest in the world.I can see why I only ever see ebikers riding around the flatter parts of the UK, I've never seen one trying to ride up any of the hills around here, probably due to the assistance from the puny legal electric motor is negated by the extra weight of the battery, motor, etc.
I think though that the reason they don't appear much in hilly areas is simply that in hilly areas people don't cycle so much. Since e-bikers are recruited from previous cyclists, it follows that less cyclists means less e-bikers.
.