Aluminum flywheels work just fine on street engines, not the nightmare you often hear about, although as explained above you can benefit from lightening a stock unit as well.
Lessening rotating mass does not create more horsepower, it will however allow to get to what you already have quicker. In racing we lighten stock rods and cranks as well, in the SCCA full prep rules you can do this by buying a billet crank and Carrillo rods, in limited prep you have to use stock rods and cranks, but you can lighten them. here's a picture of a 1275 crank that I wedged lightened (about 3 pound reduction), and then a before and after look at a 1275 rod I lightened (about a 100 gram per rod reduction), plus the polishing of the rod help to strengthen it.