from the engine it doesnt change but torque goes up at the wheels. there is no argument against that.
the shorter the final drive the higher the multiplication at the wheels, of torque.
Dynos account for final drive ratios,rpm blah blah to give you a 1:1 output number.
1.66(3rd gear)*2.93*210 = 1021
A lot more goes into acceleration but in short, a bolt on car will accelerate faster with a higher final drive ratio.
provided you have traction the shorter drive will typically out accelerate the longer one.
even turbo cars benefit from it...though there you get into issues with traction ,keeping the turbo spooled properly etc. Theres more of a balancing act there and testing needed on a case by case basis.