For a class project, nine mechanical engineering students at Yale devised a working bicycle with a hubless wheel. It's suspension-free and they only had the time and resources to go hubless on one wheel, but it works:
Why do it? As one of the students explains,
First, it looks cool. Second, we only had a semester so we wanted to pick something that was both feasible and challenging. Also, you can do a lot of things with the space that opens up where the spokes use to be. You can stick an electric motor in there. You can install some sort of gyro balanced storage basket. Finally, the fact that we couldn't find pictures of a real spokeless bicycle online really sealed the deal.