The circuit was developed for use with the 4QD series controllers specifications. These controllers have an inhibit input and the effect of shorting this down to ground is to turn down the internal demand speed. So with the battery current limiter fitted, the internal demand speed can only ramp up to a value which engages the limit.
The basic circuit is as shown. The 4QD-TEC members area information gives a circuit board layout and details of all components and the slotted ferrite ring used to sense the current.

Controllers are very nearly 100% efficient, motors rather less. So there is an inaccuracy due to motor losses. However, ignoring these, all the power taken from the battery is delivered to the motor. For a particular system, the battery voltage is essentially constant, so limiting the battery current drain during acceleration forces the system to take a constant power from the battery, and thus to deliver a constant power to the motor. Certainly there is no simpler way of incorporating a constant power throttle system!