I take mine on the highway a lot and I don't have an issue going up hills even with a passenger on the back. Granted, I ported out my heads a bit, matched the intake boots to the head (you can grind out the overlapping rubber), and ground the vacuum port screws flush with the flowpath. Before I did that, I was in the same boat as you though. I struggled to get up hills with a passenger in 4th gear.
Park the rpm at whatever speed you feel like going, and ignore it. These engines will spin high rpm on the highway, but it doesn't bother them. My typical highway speed is just a little faster than traffic. My speedo is not accurate, so I'm not really sure how fast I'm going. I've had mine over 100 indicated, but that is probably more like 85-90. It felt fine at that speed, although the engine was definitely running out of power and rpm.
You might want to verify that rear sprocket. I think stock was 38.
Camelman