you got it... the best analogy is that of an ice skater that is spinning in circles, they push out there arms and slow down and pull them back in to speed up. When you push the mass farther from the whell you will eat some horsepower to move it at the same speed.

There was a show on speed channel not long ago where they upgraded the brakes and the exhaust and lost 7 horse power. they put the old exhaust back on and were down 15! So they even though the brakes weighed the exact same they lost some power. The track times where better for autocrossng becasue the brake fade was gone so they kept them on.

-marc