If you hold your leg still at some point in the pedal stroke, it is perfectly possible to produce power (albeit a tiny amount) just by pulling on the handlebars. This was adequately demonstrated by the weighted strings experiment in one of Jim's videos. But if you recall, the criticisms were that this "static" test does not accurately model what happens in a "dymamic" situation in which you do not fix your leg at any point, but pedal continuously. If you look closely at the video of Maria climbing while wagging the handlebars, you'll see that her pedal stroke is seamless throughout.
When you do it simultaneously, the effect is combination of arm and leg power (just like stated 'on the tin'), not preservation of leg power like I do myself as it seems. I, myself, do find outputting maximum power while spinning like you do.
Unfortunately sitting up isn't possible on the Vendetta, and without being able to disconnect your torso from the seat, you can't balance the bike by shifting your weight.
Quite possible if you install short cranks - I can attest that even 140mm cranks do not affect my power (in fact, I seem faster!), but you might want to change your gearing accordingly by installing smaller chainrings upfront or, better yet, larger on the back - makes transmission more efficient. My nearly 300 lbs on rather steep hils with 34 x 27 and short cranks mixed badly - I've ridden up all the inclines huffing and puffing like proverbial Little Engine, but got some knee pains. Fortunately, they went away quickly.
It also allows you to hit much higher cadences (for a bent, at least) - I have a combination of 26" 40mm front tire, 140mm cranks, 50T front ring and 12T min cog.
I've been doing 'cadence drills' of late and I've hit 72kmh while pedalling furiously on my latest long ride while doing 'hill surfing'.
https://www.strava.com/activities/1858652697
(Unfortunately Strava averages data, but I remember the number quite vividly)
Gear calculator suggests cadence of 144. Not particularly impressive by upright standards, but totally fast enough for me!
Oh, and you will need to switch bars to those with no drop. In my case it allows me to have MTB transmission which is, while less aero, is much cheaper than road dual controls.
With something like Sram wireless or X-shifter, you can have a VERY aero setup this way, though I suggest some 'bar ends' (aerodynamically shaped) for climbing.
I may go with that some day, but will see whether my nose cone project will result in as much a benefit as I presume first - than cockpit aerodynamics will simply not matter one bit.