thanks phantom for adding that.
I was thinking the large mass (and therefore inertia) of the factory harmonic balancer and flywheel that will excite this tortional vibration frequency. So by dramatically reducing the weight and inertia of the crank pulley, the amplitude is reduced and frequency of the crankshaft is moved and its ability to self-excite is greatly reduced. So in fact it is the harmonic balancer's own weight that necessitates the dampening. An alloy pulley of 0.8kg or less may not supply an exciting force significant enough to damage the crankshaft in some cases, also its outer diameter being far smaller.
If I understand you depending on the engine and its application a harmonic balancer at the front may not be required or the original will become inadequate if various engine characterisitcs are changed.
"if the manufacturer put it there, it must be there for a reason". However, if you look at it from the car manufacturer's point of view, casting pulleys from steel is very cheap and easy, because they can be produced in large numbers and there is no waste (as opposed to machining them from billet). But because the resulting pulley weighs significantly more than one made from aluminium alloy, it requires dampening.
I had the oppertunity to fang around in an S2000 on the weekend, no harmonic balancer it had a billet alloy pulley and a 9000rpm redline.
Power wise there is no 'power' gain to changing the weight of the front pulley. The reduced inertia however will increase the acceleration significantly in lower gears. Making the lack of extra power a non issue given you are quicker anyway.
Where power may be gained is in the reduction of the ratio's of the accessories. A modest amount but the reduction is primarily aimed at giving the alternator an easier life at high rpms and stopping the water pump cavitation at sustained high rpm.
From experience I am quite keen to machine up a front pulley for the RB25 for street/strip use.