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This is correct. I think @amey is just saying that despite the legal limit, on his cargo bike it feels underpowered.
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AIUi anything with a throttle that goes over 5mph is illegal (unless licensed). With the exception of those rental e scooters that are now allowed (but still cut out at 15mph ish)
So you have to pedal, and the power has to cut out at 15/16mph. And there are watt / torque limitations as you’ve mentioned
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Many motors are within the certified '250w' category, but some motors 250w are more than others, certainly in torque. They vary WILDLY. Been on some Bosch hybrid city bikes that can barely move out of their own shadow, and yet the top gen4 cargo/cx line motors really shift, both same category. Shimano is much the same, e5000 is for city bikes only, e6100 does well and is quiet, e8000/EP8 same as top Bosch's in performance, little louder after they've done a few thousand miles.
With a cargo, get the highest torque/NM/lbFt figure motor you can afford. Having dual batteries mounted at all times makes no odds, many carry a second battery in a bag on the bike anyway, then just swap over if you need it.
my motor is just underpowered, 350w so even with full throttle I cant even achieve 20mph, the walk assist on Bosch is laughably weak in comparison.