How does cid make power?

EXACTLY. That’s why it’s called BRAKE HORSEPOWER.

You pick an RPM, load the **** out of the engine and hold it there all while the engine has its tongue out.

And what did we learn? Not much. That’s what torque you make at that RPM. It doesn’t tell you much but you’ve got a torque number.
I have run diesels on a manual dyno where it was loaded to an RPM and let stabilize. Then we changed load to change the RPM by 100, let it stabilize again. When stabile we tapped a record button. Then a graph was printed. This generally closely matched the factory graphs used in advertizing. Works for heavy duty where a truck engine is loaded and running down the highway.
For performance street and racing, you want to know transitional torque and HP.