My Kawasaki 750 turbo also has a undercut gearbox from factory. :-)
Its basically an upgraded z650 64hp engine from factory (same power as the CB750 stock), same gearbox but I think the z650 didnt have the gears undercut.
Gear shafts 2mm thicker, conrods are like z650 only the wristpin is 1mm thicker, cast flattop pistons, stronger clutch, same hyvo chain and thats it. People have been pushing 200hp with the stock cast pistons and 270hp with 810cc on that stock bottom end with oem rods and the stock undercut trans. gears.
As long as you don't machine the hardened layer of the dogs, it's a good idea to have the gearbox undercut if you race the engine. For touring around on your caferacer.. don't bother and do it when it finally skips after years of use but thats my opinion.