120bhp is a huge drop in power from the older V2 engine which was kicking out around 155bhp (in the Panigale V2 anyway). I am guessing this engine isn't destined for that platform anymore, more likely finding it's way into the Supersport range or Multistrada for starters.
Surely it’s got to be a result of Euro 5 emission restrictions? Less power =less emissions =Euro 5 approval.
You can see the similarity in design and thought with the V4 engines. Non Desmo engine with long valve and servicing intervals for touring and other models and i bet there will be a Desmo engine for the V2 Panigale next year.