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So you wanted to know why BMW crippled the range extender on the i3? Well, they wanted to meet a special classification in California and other CARB states that would allow them to get ZEV credits (zero-emission vehicle credits) for this vehicle even though it is technically a plug-in hybrid.
One of the rules they had to meet was that the range extender had to have less range than the battery range. Since the EPA ended up rating the car lower than they originally thought, they had to reduce the size of the gas tank. Another crazy rule they had to meet was that the range extender not be available unless the battery was fully depleted. So that was why they removed the hold mode as well.
As a result, the USA version of the car has a much less capable range extender. Nevertheless, the REx works absolutely fine in the city even when crippled. However, fast highway travel or long climbs up mountain passes can be a problem. If you plan to do that, you need the hold mode so that you can engage the REx while the battery is still at 75%. This will ensure that you don't lose any performance of the vehicle while operating on gasoline.