This sort of thing is causing quite a mess over here in NZ right now in the microlight category. Many of the increasingly popular models can run rings around similar certified types, and it is making the current rules (and more importantly their interpretation and application) quite absurd.I think the far, far, bigger concern for me on this "Part 103 Corsair" is the bad precedent it sets.
AC103-7 explicitly states that a "redline" on the airspeed indicator is not sufficient to meet the requirements of Part 103. The aircraft must be incapable of exceeding Part 103 maximum-speed-in-level-flight speed. An airspeed indicator marking is specifically called out as insufficient.It looks like it would easily exceed the 55 knot speed limit. I recently read an 1983 archive where the FAA said they could possibly accept a redline on the airspeed or tach indicator. That would not be asking for an airspeed performance rule change, yet allows a safe climb rate with extra power for climb only.
I think this is standard practice for the Light Sport Carbon Cub.