The best apples to apples comparisons come out of the bicycle community, who is understandably a lot more concerned with wasting energy.
I wonder if its the High Dollar or the Low Dollar bikes going Belt ?
I haven't seen any belts on department store bicycles, that's for sure. I think that the big push in offerings in that HP range is targeted at serving the emerging E-bicycle market, and E "light vehicle" market, which is growing by leaps and bounds, even in the USA, but definitely much more so in Asia and Europe.
Going from 16/42 gearing back to the standard gearing makes it feel like I've got a lot more 5th gear power. It runs up to 70 mph like it ain't nothing
I'm not surprised. I've learned the hard way that reducing final drive ratio to reduce cruising rpms on small displacement machines may be OK for around town, but really takes a toll on power in top gear. I guess maybe the factory guys know best.
Going up just one tooth on my Suzuki 250, from 15/41 to 16/41, a 6.7% change in ratio, reduced the machine's top speed by about 12 mph. I swear I was riding at 75 mph before, but now it seems like I'm lucky to exceed 60. This engine is rated at ~20hp, but it's a 1.18 oversquare engine, so probably quite a bit different in character from your 350. The ratio change is great around the city, where I like having low gears with wider usable range for less shifting in traffic, but it really hurt me on the highway. I haven't seen the torque curve for this little bike, but I'm feeling the loss of rpms in top end power.
Same thing happened with my RE Classic 500, although not as much top speed was sacrificed with for an even greater reduction in cruising rpm.