I've done a fair bit of short day jaunts and grocery-getting errand type of riding on 3 speed IGHs. Longest distances have been about 40+ kms with day trip's worth of gear in one pannier and front basket. 3 speed step through frames are probably the most common rental bikes in the Nordic countries.

I agree about what's been said about gearing, typically 1st is a bit high to my taste. I've never thought about it the way Monster Pete suggested, but it might actually make sense.

--J