What I like about forums such as this is that it raises questions that prick my curiosity, such as 'how much force goes through a brake torque arm?'
So, if my internet searches have given me good info. and I have made the correct calculations these are my conclusions:
Force = Mass x Acceleration
An XS650 weighs around 195kg + rider of (say) 100Kg
Maximum deceleration from the rear brake = 0.4g (source
here, bike was a 1994 BMW - not an XS but all I could find)
Deceleration force would be 1158N or 26lbs
Using this spreadsheet
here and using a 0.5" tube of 0.035" tube thickness and 12" long gives a margin of safety of 830% for steel and 279% for aluminium.
However, no-one in their right mind (IMHO) would brake only using the rear so the force would reduce as more front brake is applied.
I therefore draw two conclusions from the above:
1. There is more than enough strength in a steel torque arm to withstand the compressive loads.
2. I should get a life, try to get out more and re-join the human race.
Of course there is the probability that the above is completely wrong so will happily bow at the feet of those with greater knowledge than I.