That’s really quite low given that this is the total output including input from the rider.
Also, this type of bike will not operate at all if the electronics malfunction. As the proud owner of an ebike that regularly glitches and can neither assist nor shift (!) when glitchy, losing power entirely would be even more annoying.
The directive says that the motor (when preheated) may not exceed a temperature rise of 25°C over a certain period of time, nothing else. I sure don't understand why all people talk about 250W. Its a myth.
My pedelec (bosch perfomance line CX motor) definitely peaks at over 1kW of power (plus my power), so for example uphill I have a combined power output of around 1500 W.
The key is continuous rated power, which is measured with the temperature-controlled method over 30 minutes (https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:42...), and thus it can have a way higher peak-power, and manufacturers have a lot of leeway massaging the system design to formally keep in that limit. So both "there is a 250W limit" and "my bike gives out way more" can be true.