If that were the case why would husky put crank bells on the 357? Just to keep it from cutting into 372 sales?
I don't doubt putting a 357 jug on a 359 or taking the bells off makes a 357 faster than a stock 359.
However from what I have seen ported the 359 hold its own against ported 357s or a 358 hybrids. Nakes no sence, why would a manufacture a a piece to reduce power, would not think this would be for EPA reasons, as in general higher base compression transfer velocities lead to mixing more unburn fuel with outgoing exhaust.
Increasing the case volume on the 357 design will reduce base compression and consiquently transfer velocity which has the same effect as reducing the time area. The result is producing peel torque at lower RPM, In terms of Ft/lbs this may be slightly higher, but in terms of HP it would be lowered. Now if the transfers are modified to compensate from reduce base compression to force the charge through them that can work.