Yea, if the IATs are going up a lot towards the end of a run, then a good tune would pull timing according to keep it from knocking. Consequently, the peak power would be lower in the RPM band.
16 degrees isn't a ton of timing (I run about 13 across the board with no methanol), and I suspect that it gets to that 16 pretty quick, and then levels off. All other variables the same, this would create good torque down low with the torque falling off more quickly up top than if the timing ramp kept going up.
For reference, on my non-intercooled meth setup, with the meth spraying, my street tune runs about a max of 20 degrees at redline, and the track tune about 24 degrees at redline (6200ish RPM). If the IATs are REALLY cool (cold ambient air, cool motor, and lots of methanol), then it may reach that max number before redline (sometimes as low as 5000 rpm) and plateau from there. This is good, because it means I make more torque in the low and mid-range, but still keep it safe up top at redline.
Your's probably has a max number higher than 16, a ramped function that the tune would default to if everything was perfect (cool IATs, cool engine temp, etc.), but since the IATs are going up, it pulls it back to 16 to keep it safe, and thus the torque laying over up top a bit. This would also explain how much more power it has when there is no heat soak at all.