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The power is reduced because you are now more lean than stock, which is already lean to pass emissions. You need to rejet. The popping is a rich condition caused by closing the throttle while at a high RPM. The fuel mixture is high since you were on the main jet circuit and suddenly closed the throttle, so the unburnt fuel is forced out the exhaust and explodes in the exhaust system. It will sometimes also do it when the throttle is closed slowly. The fuel can be trimmed with the fuel mixture screw and also the main jet needle shape. A jet kit should fix it. The poping will not hurt the engine, but in extreem cases' has been known to blow an exhaust can apart. That is very rare so I would not sweat it. Just rejet the bike and ride the snot out of it.
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