Think of this... If I was wrong, there would be no such thing as a beam style torque wrench, because according to your theory, when the torque wrench was in bending, it would stop applying torque even if I pulled harder. We both have seen that this isn't the case though. Think about what is happening. You apply more force, the bar bends more, and more torque is STILL applied. The only difference between a breaker bar and a beam style torque wrench is a fixed, calibrated scale to measure the deflection with on one of them.
If you want me to explain the energy theories behind the impact wrench we can talk about it, but you definitely need to convince yourself of what I am saying here. Just think about the beam style torque wrench. In fact, any torque wrench will prove your theory incorrect. The beam example is the easiest style, but inside every torque wrench is a calibrated spring. Yes, it absorbs energy, but at the end of the day a moment needs to be reacted out.
YOU HAVE TO TRUST ME HERE!!!