The steering wheels' hubs rotate in two directions. The steering action rotates through a vertical axis while the typical suspension rotates in a front-to-back axis pinned approximately through the other side of the car. So unless they abandoned common suspension design to let tires lean in turns more than a reasonable amount, there needs to be an allowance for angular deflection. A pinion gear arrangement sounds like it would take up a lot of the space they're trying to save but still not solve the multi-axis problem found at all 4 wheels. I'm trying to not take their video so literally but it's not like it's a dealership rep spouting incomplete info here

But you need a CV or Universal on that drive shaft to accommodate suspension travel (or steering if needed on that wheel).

Unrelated comment, but holy shit I am a huge fan of the M8. So wild to see you on Lemmy, and this comment section is exactly what I'm here for.

With how small the motor is you could also pivot it alongside with the wheel, after all, something pivoting with the wheel doesn't mean that it has to be unsprung.