professional hobbiest-
I believe the formula for displacement boat speed is one derived from experience and observations, not a purely mathematical, vector, or lab derived analysis.
The "constant" factor of 1.33 or so, is for full displacement hulls, and a fundamental starting point, but different for other types of hulls, such as a flat dory or semi-dory hull. However, it is impractical to derive a special number for each of the possible hull types, which are infinitely variable.
You're right that the larger the power that is applied at displacement speed results in some gain, but the boat is pretty much locked in that displacement mode until sufficient power is applied to make it climb up onto it's bow wave and plane.
I don't think we're really diagreeing much here, you're just taking rightful exception to the idea that some abstract mathematical formula is an iron-clad predictor and limiter of boat performance. We all know that's not true, and the formula is just a derived predictor that is only so accurate.
Incidently, small gains in displacement speed with relatively large increases in power are the stuff of which large keel sailboat races are made of, although many of the modern high-performance boats would seem to reach planning speeds when surfing down large ocean swells.
Cheers!
Joe.