Blueroom, I don't plan on having conventional dynamos, just a hub motor which fits into the wheel; so yes this will act as a brake, much like engine braking in a car. Check out the current E-bikes on the market to see! Some incoroprate a freewheel planetary gear system, but this eliminates the possibility of regen =( There are ways around this too of course =)
That is correct hero! Although current leakage shouldnt be too bad considering most people will use their bike twice 5 days a week (commuters). Also, with the circuit design, once the controller is switched off, the capacitor will be isolated (as standard).