Honda turned there motor in the recon 4 wheeler back in the late 90s. Made it much easier to ride a wheelie and took the torque fex out of the frame. Really smooth ride.
I'm not sure a chain and sprocket is any more efficient than a differential. Maybe some one else has that data.
Usually in and open class it isn't HP that wins in fact i'll take a kart that gets through the corners over a little HP any day.
In fact that's true of most kart racing.