I fly for a living and during my Air Force days we had to re-qualify in an altitude chamber every 3 or 5 years, depending on type of aircraft.
One of the bits of data that the USAF Aerospace Physiologists repeated over and over was, "the majority of the earth's atmosphere is from sea level to 5,000 feet." At 5,000 feet there's 14% less oxygen available than at sea level and at 10,000 feet there's 30% less than at sea level. So 8,000 to 9,000 feet is pretty high. You gotta respect that.
And the percent of oxygen content in the atmosphere is just half the problem.
The other, often overlooked factor is the significantly reduced atmospheric pressure at altitude. It greatly reduces the engine's ability to fill it's cylinders. This is the factor that is magnified in the Bandit vs. the SV. The Bandit's huge carb-bore to cylinder size ratio means that its intake vacuum is very "peaky" rather than smooth or uniform in nature (i.e. if you were to see a graphical printout of the Bandit's manifold absolute pressure it would all sharp peaks and valleys, which really means "speed-up then slow-down" over and over. Very hard to do at low atmospheric pressures). This is a large part of why the Bandit's engine ends up on its knees at 8,000 feet.