>How can it not be transferred
I'm not that guy, but energy is not conserved in any interaction between two objects. Kinetic energy (a working force) is lost as heat, sound, light, vibration, and the deformation of the bullet itself, all types of energy which are not being applied to the intended target. For example, if a bullet hits a person at 1000 ft-lbs (1350 joules) of energy, less than that 1000 ft-lbs will be applied against his body even if the bullet uses all its energy and does not create an exit wound. How much energy is lost depends on a lot of variables, but in general it's a fraction of the total kinetic energy, and by looking at the formula for energy we can see that energy is more quickly increased by an increase in velocity (since it's squared). However, that also means energy is more quickly lost by a decrease in velocity (whether it is used on the target or simply dissipated, either way), and the measure of momentum is a good way to see that. Higher momentum (mass x velocity) means the object resists slowing, so it keeps more energy over distance.
I will speak from my personal experience hunting here, and I have never fired a rifle round that was more effective than Federal .308 Winchester 180 grain Power-Shok jacketed soft points. The bullets mushroom very well, can penetrate a deer sometimes clean through if shot from the front, and the internal effect is pretty extreme. The SP expands within the first few inches of impact, and creates severe wounding for inches around the bullet's cavity, usually making mincemeat out of the lungs and heart. The organs are just shredded. I used to use the same product in 150gr, and despite being loaded to about the same energy, they were a great deal less effective and sometimes I would have to chase the wounded deer for several minutes before they'd lose their adrenaline and give out. With the 180gr ammo I have never had a deer walk away.
I know it's anecdotal, but it's my experience.