The only time I'd have taken the additional weight is when I was playing rugby, and then mostly because I couldn't really afford much food. I was 20, 65kg and worked really hard to try and get to 70kg. Being hit hurt when I was that light (ok, it hurt at 70kg too, but at least then the other guy noticed me when he ran over me)
I think anyone into endurance sports would take the weight loss too (based on the running & cycling I've done).
PS I am a Marathon runner and I'd take the muscle... And have you seen the quads on a serious cyclist?
Obviously a Marathon runner wouldn't be interested in adding 100lbs of muscle the way a bodybuilder would.
http://en.wikipedia.org/wiki/File:Fabian_Cancellara_-_Tour_O...
Form, effecency, and power are important for both sports. However, cyclists focus more on power output.
Relative to the average American they do have similar thin and muscular body types. And, I think it's easy to underestimate how strong these people are because they have so much less fat than the average person. But, as you say the relative cost of drag for increased body size helps support a more bulky cyclist.
In my personal experience with cycling and running I'd say that carrying 1kg of fat running is a smaller disadvantage than carrying 1kg of fat cycling in mountain terrain. This is reversed when you consider cycling on flat terrain.
In my experience running is harder on your entire body, cycling just on legs and lungs.
Quads, yes, but have you seen the rest of the body?
WRT runnimg, generally speaking (elite) marathon runners have much higher ratios of slow-twitch muscle than average. That means they will have lean bodies, without the peak strength or muscle mass of a fast-twitch heavy athlete like a sprinter.
Take a look at http://www.letsrun.com/2010/heightweight0504.php. The entire running world was shocked when Solinsky broke 27 minutes (for a 10 km). He's 6'1", and 160lbs - obviously still what most people would consider skinny, but way, way heavy compared to most distance runners.
(You might have good reasons to want more muscle - I'm just pointing out that it's unusual for a distance athlete)
Thus, at the elite level, one expects superior performance from smaller athletes in aerobic events where power requirements are approximately proportional to body mass--such as distance running and uphill cycling. (Technically, the power requirement scales more closely to mass, i.e. M0.76-M0.79 than does the power supply, M0.67; Swain, 1994). It is not surprising that the pre-eminent climber of the 1990s, Marco Pantani, is one of the smallest men in the peloton at only 55 kg. Anything that can be done to reduce the weight of a cyclist and bicycle, without compromising the cyclist's aerobic power, will improve hill-climbing performance.
And of course sports performance is not the only criterion for choosing +5lbs muscle vs -5lbs fat ;)
To take the argument to an absurd extreme, the fastest way to lose weight would be to cut off your leg.
Obviously "losing weight" is really a euphemism for "losing fat."
In the end if you have very little muscle, regardless of weight, you should add it. It will help you lose fat (ie ripping muscles speeds up your metabolism - yes, but most importantly the burn effect lasts much, much longer than an equivalent amount of endurance work). Also you'll have more energy to do more activities allowing you to lose more fat.
I'd take the 10lbs of muscle, because most people wouldn't believe how much better it makes you feel doing regular things. I'm seriously like a pack-mule coming out of a supermarket. I don't struggle like I used to, which means I don't get tired like I used to.
Sure it would be great to be lean, but my body type would never allow it, it would be unhealthy.
I think it's a combination of malnutrition, chronic dehydration and impact on metabolism.