there is an interesting site with an explantion of the "torque loss" - it isn't really torque loss, but rather a sensation of it, due to the lack of the resistance of the heavy flywheel
what you "feel" is not always what is really going on
a good analogy would be the difference one might feel if they had big brakes up front, versus smaller ones - the nose dive from the big ones might lead you to believe it's braking better, when in reality, it could actually be upsetting the balance, and placing it all on the front - it might not actually stop faster - (before any of you "big red" fans jump up and down, there are a lot of tother things involved and required to make bigger brakes work well, and yes, they can be better if those are done)
another good one, and is very common, is the sensation that happens when you stiffen a rear suspension - the car "feels" slower - this is because the weight shift to the rear under acceleration is no longer so dramatic
here are some links to read:
http://www.uucmotorwerks.com/flywheel/index.htm
http://www.uucmotorwerks.com/flywheel/index.htm
94 Midnight Metallic Blue Cab Porsche 968 w/deviating cashmere/black interior and WAY too many mods to list - thanks to eric for creating
www.968forums.com
"It isn't nearly as expensive to do it right as it is to do it wrong."