Saying that adding exhaust duration reduces torque would probably be incorrect.
Anytime you introduce more exhaust duration, you increase the amount of overlap that you have. Overlap can do a lot of great things for you:
1. Helps make that jiggety-jiggety sound that we all like.
2. Helps a poorly performing exhaust port, or an exhaust port that is poor performing relative to the intake port.
3. Helps scavenge the intake side on a low-velocity intake port.
Those are the pluses. The minuses, again, would be based on overlap. Overlap can hurt you sometimes as well:
1. Reduces vacuum necessary for power brakes, accessories.
2. "Clouds" up low-rpm operation. Remember that anytime you have both valves open at the same time, the more chance for reversion.
Most of the off-the-shelf cams that you see have 6° split in them. That's a universal design and will probably fit the bill for a lot of engines.....but it's by no means optimal for a lot of engines.
All of my camshafts are custom ground for me. I don't use anything that's off-the-shelf....for various reasons. But having a cam custom ground allows me to change how much split I have between the intake and exhaust, which helps me custom tailor how "clean" an engine is at low rpm operation, how much vacuum it has, how it sounds, how it would "hang on" at high rpms while crossing the stripe, etc. The majority of my cams for engines with modern cylinder heads (BBM, Survival Motorsports, Pond, etc.) have about 0-6 degrees split in them.
You will see me stretch that split out for different reasons: a poor flowing exhaust port, a BIG intake port that's slow and needs rpm or help from the exhaust to make it work, etc. As an example, my Boss 302 camshafts will have 8-10 degrees of split and my Tunnel Port cams will usually have around 10 degrees as well. The reason for that is because both of those cylinder heads will have the exhaust flow about 60% of the intake flow. They also have huge intake ports that are very low velocity at rpms that we see on the street and they need help.
It would be very easy to write a book here but for sake of time and the condition of my typing fingers, what I have outlined would be a good summary for the "basics".
My advice would be to get a good camshaft event calculator and start playing with it. The DCR calculator that I use by Pat Kelley will allow you to enter in advertised and .050" camshaft events to see how much overlap is involved between the intake/exhaust lobes. That's a great place to start playing around.