I knew the Liberty had gone that route, but I didnt realize how much it had limited the occupant space. I had always wanted to ask which is why I am glad this topic came up. Thanks
Have a look at the Liberty Ace that preceded the M3W; it's passenger seat is only about wide enough for a malnourished child as the prop shaft angles over away from the driver so as to allow the final drive to clear the drive wheel. Using a short prop shaft then a bevel box plus chain or belt means that the prop shaft can be kept central through the (still narrow) cabin then the clearance for the wheel is provided by the well proven expedient of the bevel box. There is a slight problem with this statement of course!
As for chain or belt, a chain is tremendously light, narrow and efficient so is great where that really matters, say in a sports bike. The additional weight and width of the sprockets in a belt system is well suited to big, heavy, slow cornering cruiser type bikes where the additional unsprung weight isn't really an issue. Given some more development time and experience perhaps some more clearance between the belt and the tyre could have been built in along with easier wheel changing, easier alignment adjustment, better materials and so on.
Just my opinion...