After reading back though all of this.... LET ME SUMMARIZE:
1) Swapping the MPEM, flywheel, and stator will do NOTHING to the performance of a 587 engine, by it self. And, can cause drive train damage.
2) IF... you mod the engine, and get an extra 15 ~ 20 HP first... then the higher rev limiter will be benifical, but it will shorten the life over all.