Some where this whole thing got off kilter, someone forgot that to increase HP or Torque means applying more energy. A flywheel, as used in cars, planes, and most internal combustion engines is a capacitor of sorts. It stores energy produced by the internal combustion process. Torque is a angular measurement of force. Somewhat like a lever. You can increase the force exerted by a lever by either applying more force to the lever or making the lever longer and applying the same force. A flywheel works the same way. Make it heavier and it will store more energy or you can make it a larger diameter and the effect is the same as the moment arm (lever) is longer. However in either case you have to inject more energy at a given RPM for this to happen. In a motorcycle and cars etc, torque multipliers are used, these are the gear boxes usiing the same principal as pully systems, I.E a smaller pully turning a bigger pully in efect multiplies the force (torque) at the larger pully, however the rotational speed is reduced. Heavier flywheels will not increase power unless a proportional amount of additional energy is applied (Burning more fuel or burning it more efficiently, or using a fuel that has a higher energy output / BTU) and of course this also means the HP will also rise.
the short explaination of why the max torque is reached usually at a lower RPM than HP, is because after a certain point the flywheel has stored all the energy it can and then any additonal gains are driven by RPM (you can pump more energy into the flywheel but you can make it spin faster) so the HP will still rise with the RPM increase, until the maximum combustion efficiency of the engine is reached and then HP falls off dramatically. So to keep everything running at the prime points of the RPM band gear boxes are used so the engine is spinning at the RPM where max torque is generated. It is a balancing act, between combustion efficiency, RPM and rotational mass. So if a engine builder wants to get more torque at a lower RPM they add some flywheel weight and for a given displacement, make the engine burn fuel better at a lower RPM, they actually take away from the combustion efficiency at higher RPM and add it lower down. either that or they would have otherwise they would have to increase the size of the bang at all RPM's. In the case of the suzuki it was probably not producing enough power down on the RPM band, because of any number of factors, so by tweaking the gearing, increasing flywheel mass and making the combustion more efficient (bigger bang) in the lower RPM's they got what they were after. But no matter what anyone says, that extra oomph at the bottom had to come from some where. Anyway my 2 cents without the brain numbing math