@vysqn :
I'll try to demonstrate the problem from another perspective. You start with the engine and try to figure out where the power/torque goes. It is in my opinion that it is best to look at what needs to be achieved to reach the desired objectives.
There is a vehicle (car or plane or whatever) of mass ##m##, it has a velocity ##v##, an acceleration ##a## and some resistance ##R## (drag, rolling resistance, etc.).
To maintain this set up, you must also have a force ##F##. The force ##F## can be found with the following relationship:
$$F = R + ma$$
But, there is also the notion of power ##P## that is important. The following relationship must also be respected:
$$P=Fv$$
What does this means?
Whatever power source you have (combustion engine, jet engine, electric motor, horses or humans pulling the vehicle; anything), it must be able to produce the force ##F## and the power ##P##.
Usually, the force ##F## is easy to achieve (with a gearbox for example), no matter what the power is; no matter whether this power is composed (at the source) of 'force' or 'velocity'. But power is maintained through any change (not considering minor losses) due to the principle of conservation of energy.
What happens if ##a=0##? Then ##F=R## and ##P=Fv##. If this is the maximum power you can produce, then ##v## is your maximum velocity.
If you can increase the power by ##\Delta P##, then - at this velocity ##v## - the force ##F## will increase (##F+\Delta F=\frac{P+\Delta P}{v}##), thus the acceleration ##a## will increase (##0+\Delta a=\frac{F+\Delta F -R}{m}## or ##\Delta a=\frac{\Delta F }{m}##), which in turn will increase ##v##, setting you to a new equilibrium. Note that you might need to do some transformations along the way to make sure ##P=Fv## for the vehicle (like changing the gear ratio for example).
What happen if ##v=0##? Then ##F=R+ma## and ##P=0##. This means that as long as the power source can produce the force ##F##, you are OK. How much power does it [keyword]
needs[/keyword] to produce? None.
So a 5 hp lawnmower engine can theoretically produce the necessary force to reach the same acceleration that a 10 000 hp dragster engine can produce ... at ##v=0## and only at ##v=0##. Note that in reality, there might be so much losses in the transmission that the force ##F## will not be reached (In fact, either ##R## or ##m## will be greater in some way).
But if the engine produces, say, 300 hp at ##v=0##, where does it all go? It goes into wasted heat (the tires spin, clutches slip, etc.), mechanical energy (stored in rotating parts because of inertia) or elastic energy (parts will deform).
What I'm saying is that instead of starting with the engine and trying to figure out what you can do with it, try to analyze what is required by the vehicle.