For me, that would be interfering with fold. The motor limits how far the seat tube goes down, so the bike will not lock together. It also prevents the wheel from hitting the main tube, so I doubt that the handlebar and stem will lock either.

However, if you would be satisfied with the fold, I don't think having rack would make any difference.

Myself, I don't like this friction drive concept mainly due to the noise, and it interferes with the fender.