this post was submitted on 18 Jan 2025
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The benefit is driveline efficiency- by eliminating all gears/CV joints/axles and only having one or two bearing races rotating, you reduce driveline friction losses and "wasted" rotational inertia to effectively null. With electric vehicles every single watt per mile matters, even shaving 0.1% off helps bunches. It also reduces part count, and thus cost too.
Per wheel motor drives also allows significantly more advanced torque vector traction control.
The downside is just what you say, mechanical isolation- the motor is now in a dirtier, harsher environment, the power cables must now flex continuously with the suspension and will be a very high risk failure point, and the outboard wheel now has a significantly higher unsprung mass meaning the suspension will need to be beefier and be less effective at dampening road vibrations to the rest of the vehicle.