Yes, high power might help play catch up on the straights and may help keep up with weaker but better handling cars. But tighter more technical tracks may negate this advantage.
Regardless, taking corners is more fun, and requires better engineering and driving skill than simply going fast in a straight line.
Again, if it was all about a car meeting daily driver needs and nothing more, then no car would come with more than 250 hp, no car would have a top speed greater than 120 km/h, no car would come with high performance summer tires, or big brakes and calipers. In fact, we'd all be driving minivans and crossover suv.
And where does this drivel about mustangs being a good bang for the buck come from? Over here, the 2010 gt mustang with the v8 4.6 engine that makes a measly 315 hp, FIVE speed manual, and the optional track package has msrp of about 41000. The 370z touring with about 15 hp more out of a v6 with almost 1 litre less displacement, SIX speed manual with SRM, independent suspension, and the sport package has an MSRP of 45500. Hardly a bargain considering the z is faster, better quality, better fit and finish, better reliability, better image, and better resale value.
Car making should be about innovation, about new technology. That's why they have engineers, and an R and D budget. Their objective should be coming up with something new, refreshing and updating their product, and push themselves to their limits, not just recycling stale outdated products just because people keep buying them. Look at nissan, they created innovative new technology with the vvel, synchrorev, and in the future possibly direct injection. did they have to do that? no. would people buy nissans if they didn't? for sure.
Speaking of innovation, i heard that nascar has recently taken a very bold and innovative step and will begin experimenting with fuel injection