The Honda engine started life with the NR500, as you say, to circumvent the rules limiting number of cylinders. Apparently this thing revved to an unheard of 22000rpm in 1979! As a concept, brilliant - but a complete disaster as a race bike. This thing even had a monocoque chassis and I seem to remember the fuel tank below the engine. Perhaps a classic case of losing sight of the bigger picture and just seeing the engine in isolation?
I wonder why desmo valve gear never really caught on with racecar engines? I can see why not these days, but in earlier times