I wrote a paper on this subject as it is always topic of controversy.
Basically, torque is that kick in the back that you feel when accelerating. Also, torque makes HP (torque x RPM / 5252 = HP) Torque across the rev range is good, provided you are starting from xxx RPM.
Peak HP is important to everyone because it is the energy used to keep the vehicle moving. HP is used up in wind resistance, drivetrain loss and friction to the road. When racing, you are usually shifting at the higher RPMs around where the peak HP is so the entire torque curve is not needed. For example, you are drag racing and are now accelerating in 2nd gear to redline, say 6300RPM, you shift in 3rd and the revs drop back to say 4300RPM. We now don't care about the torque below 4300RPM because we'll never see it again! Peak HP is important because it tells us where to shift so we stay in that powerband. That is why torque at high RPMs is desireable, which co-incidentally is the equation for HP.
edit: Sorry, I forgot to mention that I do agree that parts advertising + X HP is misleading. I know that a lot of those fart sounding exhaust systems for the imports add peak HP, but at the cost of low end torque.
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Marc
2003 PT Cruiser GT Turbo, Silver
1985 Dodge Omni GLH Turbo 16V, Black
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