Jack- while I see where you are coming from, you left out one VERY, VERY important fact in your analysis;
When you are launching a car, you have two factors to contend with. First of all, you have the torque the engine can produce, thats a given.
Second, you have the momentum of the engine components being absorbed into the driveline.
However, The second factor ONLY, and I repeat, ONLY comes into play while the clutch is being engauged- such as from a launch. However, do you ever lauch on a dyno? nope.
The forces have to be absorbed into the driveline because the upper gears are not capable of spinning the tires, even in a launch situation. the driveline itself must be able to displace the engine's torque, as well as the momentum of the crank, and slow it down in a given timeframe. For instance, an engine that makes 500 lb/ft of tq spun to 5000 RPM, and then have the clutch dropped, could very well instantaneously produce upwards of 1500 lb-ft of tq. However, that INSTANT, may be enough to break parts. a Dyno, will never see that instant, becuase there is no launch involved.
I will check back on this post in the morning- I have far too much alcohol floating around to continue with this debate at 2:51 AM... LOL