Carb trouble!
Although the idea of a RAVE valve problem sounds a bit logical, there is one part that doesn't. If the bellows have no holes in them and are still pliable, then it really shouldn't matter about them being stretched a bit. Reason being is because the Rave valves, which are normally in their lowest postion to the cylinder at low speed, are kept this way with spring tension. You'll note the spring in the RAVE valve really doesn't have that much tension on it to close them during low RPM's. When you increase your throttle, you increase pressure on your cylinder. The RAVE valve has an internal port, that uses that pressure to push the valve open as you increase your speed. If there was a bit of stretching, or even a small hole, it shouldn't really keep the engine from running at top speed. The rave valve allows the engine to exhaust more gases from the engine so you can breath more fuel, hence making high rpms.....this was an engineering marvel. If the valve is sticking, it will run crappy at low rpm's, but once you pass a certain speed, the engine will kick in and go wide open. Just make sure your red caps on top are tightened all the way down.
I think your having a carburetor problem. On the 787 (which is my personal engine type) the two carbs are sycronized to each other, one called a MAG, the other called the PTO. This really means that one is on the magneto side and the other on the pto side of the engine. The carbs operate in three ranges and controlled as follows:....Low speed screw, for idle to slow speeds,........the Pilot Jet, which is for your in between speeds and last, the Main Jet....so if your engine seems to be going back into the hole and when you come out of it it's fine, I would think you have partial plugging in your main jet of either one or both of your carbs. I'd recommend taking them down, one at a time, and go through them. You don't have to buy a carb rebuild kit right away, I'd just look at them, carefully removing and looking into the jets and diaphragms. You can use carb cleaner and that little nozzle that comes with it to spray through the holes to make sure the internal ports are clear. Check the diaphragms for holes etc... Carb gaskets can normally be reused as long as they weren't sealed with a sealant. I'd only do this long enough to trouble shoot. If you find the problem and fix it, then come back within a riding season to replace those gaskets, because you dont' want one sucking air, that's another story.
If you do take them off, one at a time, pop off your syncro bar, that connects the two carbs together, from the pto side and careful not to disturd that setting. If you make any changes to these cables, one is your throttle and the other to your oil injection pump, you must make sure you re-check the settings from the oil pump. That is very important. You don't want to move it because you could make the engine burn to much oil and cause plug fouling and carbon build up, or to little and burn the engine up.
I hope this helps!.........but I am 95% sure it's either one or both of your carbs........