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Spinning the water pump, alternator, and AC compressor takes power. In the case of the pump and compressor, that power increases by the third order with speed. In other words, it takes 8 times more power to drive a pump twice as fast.
You can imagine that if you spin the pumps more slowly, more of the engine's power can go to twisting the wheels. And because of the third order relationship the faster you spin the engine, the more power is saved compared to a larger pulley.
The drawback is that at engine lower speeds, the pumps may not flow sufficient water to keep the engine cool in an extreme environment, or the alternator may not provide enough current to a car with a very high draw stereo with the lights on.
As Mr. Raby has found, everythimg works fine in his region.
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