I don't mean to get too far off the topic, but ~300V has been pretty normal for hybrids. An interesting note is that many of them use boost converters to up battery voltage to the inverter. The older Prius boost converter takes voltage from ~200V to ~500V. I believe it was rated for 20kW? The Lexus RX450h ups that to boost to 650V for their rear diff motor.
I don't have much of an opinion as to whether higher voltages should be allowed or not, although I do see some extra safety concerns. What I would really like to know is why European teams feel the need to run such high voltages, anyway. I would understand if teams were using salvage EV motors that were designed for 500V+, but teams are getting custom motors, anyway. Torque density, assuming the same stator and rotor configuration, is directly related to copper fill and that's (probably?) not significantly changing between winds. Heavier cables?