The flywheel only needs inertia to help give a smooth idle on a road car engine. Ideally it should be as light as possible. On race spec engines the flywheels are very light indeed, inertia is not important here as idle speed is often so much higher.
Deffinately agree with Nick on lightening a standard flywheel too much though. An exploding flywheel will burst through a bellhousing and then through a bulkhead or tranmission tunnel (depending on engine configuration) with ease.
Very messy indeed.