Great topic. Being in NY, we are coming OUT of darkness, into the light.
All my life, anything with a motor had to be registered, regulated, inspected and insured (except for mopeds- they got the registered and regulated part).
Two things will bring on more regulation- speed (causing accidents) and noise (causing dander to rise).
Actually, the kit-foundation of these things is a real benefit. Around here, we see zero little pocket bikes- they all got snagged by police or wore out. They WERE sold even in car parts stores. No more.
Easy come - easy go.
Kits are a whole different world.