Every engine design is a series of tradeoffs. The most relevant here is that a design that breathes well and makes good torque at low RPM (under 4000) is not going to be able to breathe well above 7000. That's the typical design of _most_ American pushrod engines. I'm speaking more about the small block chevy series, the hemi, ford's 302/351, etc. This doesn't apply as much to the 4.6 sohc/dohc style engines.
These engines have simple designs - one cam riding down inside the "V" of the engine, constant profile, and usually 1 intake and 1 exhaust valve per cylinder. The design, with the long pushrods, lifters etc makes it a poor choice for high RPM operation - too many parts with tolerances that would probably get torn to shit at high speed. So they optimize the cam profile and such for low end grunt and midrange. Choosing a cam for that range pretty much means that it's useless as the rpms wind up.
On the other hand, if you design an engine for higher rpm operation, with the cams up top with a "tighter" design (less slop) in regards to opening the valves...and use more valves...you're free to turn up the RPM range a bit. However, to get a cam that allows the engine to breathe well at high rpm, you give up power down low. By spinning the engine faster, you get more HP from less torque (HP = torque * rpm/5252) so a smaller engine makes more hp per displacement.
A torquey, low-end motor is easier and more fun to drive and quicker around town. When you start to play on a race track, you generally want to drag less weight around...so you go with a smaller car and smaller engine...and here the the high-revver makes more sense.
Also keep in mind that while the high revver may get more HP / displacement, they will usually have a higher (ie worse) BSFC (brake specific fuel consumption - fuel per horsepower).
To figure out on paper what's going to "win" in a drag race, you'd need to use a horsepower graph and plot your shift points and look at the "area under the curve" that you're using based on those shift points. Whichever car is able to put down a higher average horsepower per pound of vehicle (and driver) weight should win, all else being equal.