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You are spot-on Tommy! I think when all the arm-waving and technobabble is over, the answer is that the real benefit of the machine is to cut down the manhours required to finish a block to an assembly-ready condition. I don't believe there is any measurable horsepower difference in the finished work product that is meaningful. There is however, a significant labor content difference in the job that is meaningful to the shop.

The bottom line is the benefits that accrue from the use of this type of machinery belong exclusively to the shop, not to the customer. It is simply a reduction in the labor content of the shop's service offering. The more specialized equipment allows a specific job, in this case honing, to be accomplished in less time making it more profitable for the shop and not any meaningful difference in engine power output for the customer.
Let's be honest. He just wants to do this so he can sound cool after the engine is built. Just like using a dry sump set up that isn't really needed.
 
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