thanks for the explanation, Mike.
What Mike says feeds into this: you want to promote the exhaust flow, not just "free" everything up. For this you need the right amount of backpressure, and exhaust components that helps the scavenging effect help too. You also don't want the exhaust pipes to be too large, as this actually slows down the velocity of the exhaust gases and also contributes to the lawnmower/fart sound factor.
so for mild OHV motors, I recommend a single exit muffler (I like Magnaflow) and a 2.25" tailpipe. Later years may go to a 2.5" tailpipe as they flow exhaust a bit better. For the SOHC: the same, with a 2.25 or 2.5; whichever is a 1/4" larger than your stock pipe.
Granted, every vehicle is different, and these are safe suggestions. That is, they should not lose torque, but may not yield the max hp gain. And of course if you're highly modded most rules go out the window. My exhaust consists of JBA headers, and exhaust components (hiflo cat, magnaflow muffler, resonator x 2) that are basically a free flowing 3" pipe to a 2.5" tailpipe.