Vibration does rob power, but no single cylinder engine can be perfectly balanced.
Many years ago, I bought a Fox .78 from a modeling friend, he had sent the engine off to some engine guru to supposedly have it balanced and blue printed. That engine did run smooth and my friend Bill had flown it a couple a years and moved on to bigger airplanes and gas burners.....I wanted the engine for a big (9ft span) airplane, Bill, my friend, had flown the engine on pattern type planes. Any way, that particular .78 was installed and made ready to fly and to the field I went. Getting there, I proceeded to start the engine in order to tune it using a 14 x 6 prop that I had always ran on other .78s.....that engine ideled better than any engine that I had ever owned and upon advancing the throtle it was smooth as could be, but acceleration from idle to WOT seemed to be sluggish but I attempted a flight, got airborn and trimed and played a bit and discovered that when I pulled the nose up, that old Fox .78 power just wasnt there......so after thinking an tinkering, I pulled that engine out of the plane and pulled another .78 from another plane and headed back to the field, fired up the old .78 that now resided in the plane , tuned, noticed the old familer crispness in acceleration, old familer level of vibes, and got airborne, old .78 flew that airplane with authority and never slowed down when the nose was pulled up......WHAT THE HECK......the old stock .78 made power much better than the (engine guru) breathed on one did....called my friend that I had gotten the engine from and questioned him about just what had been done......(balance) was the big thing.....decided to tear the engine down and see if I could determin why it didn,t make power like my other .78s.....Bill flew pattern sized planes with it, 7 - 8 lb range, 11x7, 12 x 7 prop size, I needed to turn 14 x 6 and fly 12 to 14 lb range...
But any way, befor tearing it down, I bench ran that engine trying to determin what ailed it, smooth as silk, ideled fantastic, struggled to turn a 14 x 6 up to where I knew that it should........
Pulled the back plate and immediatly witnessed the problem.....pulled the engine completly apart took the (balanced) crank out and immediatly got on the horn and ordered a new crank......A massive amount of weight had been brazed onto the crank counter weight and machined and dressed to perfection.......looked good, engine was smooth, ideled perfectly, but just didnt make the power that I knew that it should..
And that is what I mean by the term (over balencing) add enough mass and you can dampen lots of vibration........Phil