Just resurecting it for an argument on a friday.
My masters dissertation was on putting sensors in sports gear so I read arround this stuff.
In summary-
Pedaling 'perfect circles' is more about keeping the tension in the chain as constant as possible, than actualy pulling up as hard as you push down.
Just try it, attach a 25kg weight to your foot (a 25kg sack of spuds maybe?) and try and lift that leg up as if your were pedaling.
A sprinter can put down arround 8x that force (arround 200kg per leg)!
If you could pedal a perfect circle you would detatch your lower leg from your upper leg with the strain on the ligaments.
SPD's are more efficient, but only 20% ish, 10-15% of that is down to shoe design, if you put 5.10 rubber on a set of SPD shoes you get back most of that loss. the remaining 5% is in lifting the dead weight of your foot, shoe and leg. But in most situations SPD riders are doing just the same and not pulling up.
Anyone on a tandem? If you try and ride with the pedals in phase and the second person is significanlty weaker than the other, they feel like the pedals are falling away from them, this is what your back leg experiences when you try and pedal perfect cicrcles, at best it barely adds anything to the torque, normaly it just lifts a fraction if its own weight.