Hack,
I see your point but I know there is more to it than this.
It really comes down to symantics - torque can be measured while hp can not. As far as which car would be faster, there is always an advantage to making more torque at a higher rpm although there is a point at which the car with more torque and less hp in your example would beat the lower torque, higher hp car - otherwise we'd never beat the ricers...
65ShelbyClone,
You've got it backwards. Torque is work - literally measured as how many pounds of force (lbs) applied at what distance (feet) from the centerline of the crankshaft. Just like a torque wrench. When you crank down a bolt to 100 ft lbs - that's exactly the same as when an engine puts out 100 lt lbs. It's measurable. hp is torqe x rpm/5252.... and yes, torque and hp are ALWAYS equal at 5252 rpm.
Torque is work, HP is the rate of work ... hp tells you how quckly you will be able to use the work.
Say you have two buckets of water...
#1: Completely full of water, small hole in the side for water to run out.
#2: 1/2 full of water, large hole in the side for water to run out.
Place #1 above a water wheel so water runs onto the wheel. The wheel will turn slowly for a long time. Work is being done.
Place #2 above the water wheel. The wheel will turn faster for a shorter time. Less work is done (only half as much water) but at a faster rate (larger hole in bucket).
Bucket #1 is the high torque, low hp engine.
Bucket #2 is the low torque, high hp engine.
Ideally, we want the best of both... a full bucket with a big hole in it

...since this is not possible, we conduct trade offs to get the engine that makes the most torque in the highest rpm band in which the engine will survive. This gives us the largest area under the torque curve and the highest torque numbers (as rpm increases so does hp).
If you run a series where maximum rpm is limited (Indy car, etc), you build your engine to have as much torque as possible in the rpm band when the race will be run. It's that simple.