Machine shop Tom and Johnsongrass1 know what theyre talking about. Yes a 350 given equal parts will make more bottom end than a 327,and yes dispalcement and torque are the simple,safe soloutions to building an effective street machine. However a smaller stroked motor can be made to generate uncharacteristicly high HP numbers in the upper end. For someone who knows how to use it this is also very effective. Take for instance a 60's era chevy II with a l-79 350 hp 327. Those little critters were big block slayers, why? because they were set up properly.. Lightweight chassis with proper gears and engine internals are all key. Same with the 302 Z-28s.
There was a guy at my high school who shoehorned a 327 under the hood of an old VW bug. Major custom fabrication and customization. The steering wheel extended way back and the back seat became the only seat. I watched that little bug smoke many bigger cubed muscle cars at the strip.
Its not a one size fits all proposition like building a stroker or big block, but it works.. It also can be more expensive to safely make 7000+ rpms, but that is where a shorter stroke begins to show its worth. It is not as likley to grenade at high rs as a 3.75" stroke.