I think we've got a few problems already classifying this as an ultralight, assuming the claims are true.
All quotes from
http://www.ultralightflying.com/ultralight-vehicle-regulations/ultralight-vehicle-regulations.htmlA single person ultralight must:
Has a fuel capacity not exceeding 5 U.S. gallons
If this thing is as big of a gas guzzler as is said, 5 gallons isn't going to get you a very long flight.
Is not capable of more than 55 knots (63 mph) calibrated airspeed at full power in level flight;
If it's capable of reaching 173 mph, as claimed, then that's good reason to not classify it as an ultralight.
As for using it as a terror platform, if people don't listen to the regulations...
* No person may operate any ultralight vehicle in a manner that creates a hazard to other persons or property.
* No person may allow an object to be dropped from an ultralight vehicle if such action creates a hazard to other persons or property.
You've still got this rule:
Operations Over Congested Areas
No person may operate an ultralight vehicle over any congested area of a city, town or settlement, or over any open-air assembly of persons.
Now, I can't go without saying that waivers can be given and exceptions can be made, but the regulations, at least argue against what some of you, and even the articles, are suggesting.