Define 'competition'...
'Under 400cc bikes with old styling'?
'350cc bikes that cost $4k'?
'Old styled bikes under $4k'?
As a direct competitor, the Honda wins hands down. Reliability, every day of the week.
Historically, the 2 or 4 valve argument is easily solved by looking at the track...
2 valve GS engines were always favoured over the 4 valve GSX on the drag strip where torque is king. Of course, as technology marched on, the 'out of the box' performance of the 1200 Bandit, then the 'busa pushed the old 2 valves to the back of the shed.
Back on the highway, a little 350cc would probably be best with 4 valves and a 6 speed box (unless you're a sunny Sunday backroad blapper). Look at something like the Suzuki 350 Goose (a bike I adore and the first standard roadbike to enable a rider to get their elbow down!).
The Goose is an old bike, not a pretend old like the H'ness or Meteor - so the new pair should be able to trounce a Goose in every situation; acceleration, top speed, handling, braking, mpg, service intervals, everything.
If the 'competition' is smashed by a 30 year old Suzuki, I'm not remotely interested in getting my wallet out.