I really like Buells, and I want to ride one. They intrigue me- particularly the XB12S. That looks like it has almost everything I want in a streetbike.
I don't, however, think an 1125cc bike should be racing in the 600cc class, ever. It's not like in the old days with the XB where Buell could claim that they were handicapped by being air-cooled; the 1125R is definitely a liquid-cooled gigantic twin, and should have no excuse for not being competitive with literbikes from the big 4.
I understand Buell is a small operation, but what you're forgetting is that they have some help. The engines for the 1125s are outsourced to Rotax (who definitely know what they're doing), and they have financial backing from HD, who definitely have some deep pockets.
Erik, stop making excuses. Run the 1125 in Superbike or get out.