No, the mass/weight of the pulley itself is not the major benefit of using a smaller pulley.
They are not that much smaller in mass/weight and I doubt there would be any measurable benefit from saving that 1 pound (If even that) of pulley weight. The measurable benefit comes from spinning the accessories on a motor slower (the ps pump, the water pump, the alternator, etc.) That’s why they are a smaller diameter.
As for a lightweight flywheel, while it will allow the motor to rev quicker, a heavier flywheel can chirp the tires easier than a light one. The reason is that greater spinning mass resists change. Just hold the rpms steady at 4000 in first and shift to second with a quick clutch release and the tires will chirp. That’s due to the rotating mass not wanting to slow down as quick as the gear change wants it to.
On an n/a motor like the Viper an underdrive pulley will only free up hp or parasitic drag loss by reducing the mass/weight of the pulley.... I later added a lightened flywheel and that really woke up the car...Used to chirp tires even in 3rd with quick up shifts....Really changed the feel of the car...
I can only imagine the felling on a 450hp car...Anyone run the 1/4 with just these mods. Gotta be worth at least .3 - .5 ...How about teh pulley/flywheel and some 3.55 gears header/catback/filter.....