Although it is not very obvious, I agree with you. The numbers were supposed to make sense, based on arithmetic calculations and I went through them multiple times before the engine mishap which led to the upgrade. Got a larger prop to see if I could make it cruise at 6knots without blowing it to bits. No big improvement.
It is very possible that out of the 19hp on the MD2020 some of them became seahorses over time.
In theory should be able to go near or above 3200rpm or at least hold itself at 2800 for a while. In reality, it got dangerously loud and that made me feel very nervous. The md2020+120S saildrive was always underpowered on my boat, even on the larger pitch prop. It just did not make enough power to cruise comfortably as fast as slightly larger vessels (33-34ft). Even on a freshly painted keel. To reach 5.5knots it would take 2400rpm and some waiting. In rough seas or opposing current it would really struggle. Above 2600-2700, just would refuse to go. With a bit of sealife on the propeller, 2500-2600 was the hard limit.
Given the external size of the engine is the same, fuel consumption almost the same, why not go a step larger? Having more power and not using it probably beats not having it at all.