Grit,
Not sure it's a 7-1 ratio. It might be. BenK has used a ratio on bikes, a human notices 1 to 2 oz reduction on a moving part, vs needing 2 lbs on a non moving part.
When I put 285s on my truck, about 10-15 lbs extra per corner, mpg went down 3 mpg about the same as when I've had 1500 lbs in the bed with stock 265 rubber.
That's more in line with Ben's 16 or 32 to 1 ratio.
At the end of the day, you and I and may be jimlin are on the same page, that wt reduction via tire or rim reduction, does net you more HP to the ground vs drivetrain loss.
OP I have not seen come back with where they are HP low. If elevation, not sure lighter tires/rims will help, since one is losing 2 to 3% of HP per 1000' elevation gain. So assuming 6000 to 8000 ft elevation, that potential 20-25% power loss. Nothing short of a forced induction add on will help in this situation.
Marty