Power to weight, FTP and Terrain Profile
On flat terrain raw power is what is more important than Power to weight ratio.
On rolling terrain P/W is important, but the larger rider still has the advantage.
On mountainous terrain P/W is the determining factor.


You can see this from races in pro cycling.
Flat races are won by large strong riders and sprinters.
Rolling races are won by mid size riders with punchy acceleration, but not the highest FTP or P/W ratio.
Only in the mountains do we see the riders with the best P/W ratios winning.

So yes, in this case rider 2 will be significantly stronger, as he can match the lighter rider on the climbs and has a huge 90W extra on flat sections.

Speaking from personal experience as a 60kg rider, even riders with a lower P/W ratio than me can put me in big trouble on the flats even if I can destroy them on a long climb.