I have adapted 6 or 7 of the treadmill motors to various machines and I decided pretty quickly that trying to retain the flywheel 'as is' was a lot of unnecessary hassle. IIRC that is a 17mm shaft, and I never have any thing that will fit the motor shaft anyway, so what I do is to cut the hub out of the flywheel - either trepan on the lathe or trim it out on a bandsaw - that lets me keep the left hand threads and be able to use it to act as a bushing for whatever pulley setup I am wanting to use on that particular machine, some times having to bore the pulley to a size also.
I have never seen any hint of a problem not having used the flywheel...Ive got a lathe, drill press and a bandsaw running TM motors now.