Less flywheel mass, or less mass in the crank/rods/pistons etc is always going to be less engine braking! always!!!
and that race generator set up............ it has less electrical output than stock and a lighter flywheel etc so it will indeed show more hp at the wheel due to less parasitic losses from the stator/flywheel losses...........
I have installed numerous of the 03/04 race stator/flywheel and the 05/06 units and ran them on the dyno......... it is nearly always about 1.8-2.6hp for the range with only that change! most being closer to the top end than the bottom end
There have been tons of other bikes that I have set up as total loss that have been in the 5hp-6hp arena, so yes......... it may surprise you but the parasitic losses of the stator/flywheel is actually substantial.....
I run a race stator assembly on my own street bike, I can't run high beams continuously for hours without discharging the battery, same goes for my heated grips- very limited run times which is fine since I turn them on and off routinely every 10-15 minutes because they get too hot and my hands start to sweat............... but it provides just enough electrical output to keep the battery fully charged even with all street lights installed and working for normal riding I do
I would not have gone that route sans..... I had it laying around and I needed a new stator after a crash (which broke the stator cover and stator) about 10 years ago.......... it has worked fine for 10 years.....