I know this thread has been dormant for awhile, but I've read through it and find it interesting. I won't pretend to understand all the physics and engineering complexities, but to me there seems to be a simple reason why 700c wheels would be faster than 26" wheels which doesn't seem to have been mentioned (or maybe it has and I just didn't understand):

All other things being equal (which I know is almost never the case, but for argument sake) the larger the diameter of a wheel the farther it will roll per revolution. Since 700c wheels have a greater diameter a bike with 700c wheels would go a little faster (again, all other factors assumed to be equal) than 26" wheels. Does this make sense at all, or am I completely off base?

I know wheel diameter is only one of many factors that determine how fast a bike will be (as this discussion illustrates), but to me it would seem to be one of the most important factors. Granted this speed advantage for 700s would be partially offset by other factors like greater weight, etc, but purely in terms of maintaining speed 700s would seem to have an advantage, though as others have mentioned 26s might accelerate better due to the lower center of gravity and lighter weight.

And just to be clear... I'm not an advocate for one being inherently better because I think that depends on rider size and intended usage. To me it seems to make sense that 26s would be better for smaller riders, while 700s make more sense for larger riders. I'm 5'9" and currently ride a 700c bike that seems to work fine, though in all honesty 26s would probably be more well suited for my size (I just on the cusp of 700s being a little big for me).