I look at it this way. There are definitely different reasons, terrain and use-cases people are buying OHV machines for. When it comes to the higher hp machines, an intended use may be for mud bogging, riding dirt/pavement roads, sand dunes, drag racing or down right bragging rights on hp. Then there are those buying mainly as a work machine. None of that I personally care about. i also couldn't care less about doing wheelies, what does that really prove? What I want is a nimble, well balanced ATV for trail riding which is also reliable. I actually don't really even want a SxS (mostly), I really enjoy riding on top of an ATV with the ability to throw my weight around.
On actual trail, I've found I'm typically in the 20-40 mph range. That is where the Grizzly/Kodiak 700 platform shines. Would I like a little more hp? Sure, 5 more hp might be good but I would also say not at the expense of weight or disrupting the current nimbleness I get with my Grizzly that provides the fun factor I'm looking for. So, I personally do not see the need for a 1000cc ATV for the trail riding I do, it seems complete overkill. Add, typically those 1000cc machines also have weight increases and in some cases, significantly so. Seems where you live you are primarily riding trail. Don't get too caught up with other ATVs having really high hp. Find what works for you, where you like to ride and what makes you satisfied, don't dwell on the hp wars as it seems it could end up being overkill where you are at.
Yes, I've mainly mentioned what I have in the context of ATVs but I'm sure some of that can also apply to SxS. Difference being is SxS machines are quite a bit heavier than ATVs so higher hp is going to be better but compare power/weight ratio. I also understand when someone feels the need to switch off an ATV and move to a SxS for personal reasons. With that said, I've always had a slight desire going after a pure rock crawling machine where an extended wheel base makes a big difference. If that were the case, I'd be finding myself a decked out SxS or Jeep. But now you're talking significantly more money in a build and to replace the broken parts which is that pay-to-play aspect. Was it you who also, or used to do Jeeps? Unfortunately for me, the money tree I have planted in my backyard has failed to produce extra disposable cash. Retirement concerns also seem to draw more priority now. BTW, the Honda Talon looks like a nice machine just not sure if it is designed more with dunes in mind like the YXZ.
Just one person's view.