Its quite simple, the M-max etc only gives the 1Kohm no matter what gear you are in, the cdi thinks it is always in 3rd and does not cut the ignition. You could run any of the lower gear resistances, im not sure if they give differences in ignition timing, the only way to test would be to run the bike on a dyno for each resistance and see.
Regarding the 53/59 hph bikes the 6bhp is not missing, its just simply been moved down the power, more mid less top end.
If you go to the track and take a look at 70+ hp 400cc race bikes they tick over at 3000rpm as the bottom end is completely flat in the serch for outright bhp, they simlpy will not tick over due to making all the power after 10000rpm.