Regarding the rear hub, I believe Shimano and Sturmey-Archer both make internally-geared hubs that take cassettes. The Sturmey-Archer offering takes 8 and 9 speed cassettes. I don't know what the durability is on either offering; but at least if an old hub breaks, there is a replacement path.
I wonder if the E2 handles any better with the fork turned around, or by replacing the recall fork with ANYTHING else? Probably not, considering that 90 degree steerer tube.