a lightened flywheel will lessen the rotational inertia of the engine, which will only affect the torque that's felt when you let out/dump the clutch... once the engine and input shaft on the tranny are both spinning at the same speed, that lack of momentum caused by the lightness of the flywheel wont matter anymore. then engine has less weight to spin, and so wastes less power on spinning up that weight...and thats all that really matters ..basically, you dont lose that much real engine torque, just the torque provided by the heavy flywheel spinning around really fast then dumping all its energy onto the clutch.
lemme put it another way.
you remember back in elementary school how hard it was to keep a merry-go-round moving fast with 15 kids on it?... thats the heavy stock flywheel.
but remember how easy it was to push the same merry-go-round when it was empty?... thats the lightened flywheel.
and dumping the clutch is like trying to stop them, the 10 kids have alot more momentum than the empty one, but once that burst of momentum is gone, the one with 10 kids is still harder to push than the empty one....
on a drag strip you can use that burst of momentum alot more due to the rapid gear changes (but usually not enough to beat the advantage a lightened flywheel has while you arent shifting), but on a road course you usually shift without dumping the clutch(in turns anyway) and you cant take advantage of a heavy flywheel. thats why lightened flywheels are great for road courses, but as great for drag racing.
you know how 195 hp at the crank isnt 195 at the wheels?... well getting rid or rotational mass from the drivetrain makes for smaller losses between the crank and the pavement, more power at the wheels. a lighter flywheel also helps the engine rev faster... so you can get all the ricers to bow down to your greatness without even breaking any laws.
another plus is that you wont wear out your tires from spinning all the time, and on a fwd, its easier to launch without spinning... and most of all your tranny will last longer cause less of that huge surge will hit your transmission when you dump the clutch during hard gear changes...
sorry for the drawn out post, i couldnt think of a way to explain it any shorter..