Depending upon your crank length a 24" rear wheel is likely to make your pedals pretty low -- not sure that you'd be pedaling through corners or not on this rig, but perhaps something to consider. Also wondering what a 24" wheel would do to the front end geometry -- granted, with a Xtracycle the rear wheel is pretty far away, but still...)
The Shimano IGH hubs come in several levels of quality -- I had a 7 speed Nexus on my commuter/town bike for about 5 years - -worked fine, but did wear out in that time period -- probably aided by that bike seeing all sorts of weather and exposure even without having what I would consider to be a lot of miles -- and although hypothetically it was rebuildable parts were absolutely impossible to obtain, so.... I've heard good things about the Alfine level hubs, and personally would go that route, but not expect a lifetime of use. As always, YMMV.
Julian Westerhout
Bloomington, IL