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But, when I sheeted in at that traveler distance at the angle I was pointing the boat almost came to a complete stop, so letting the main out actually worked better but I thought this was not supposed to be so.
It actually is what happens. As the windspeed increases, the drag of the rig exceedes the amount of lift that you can handle. Your only options are to hike harder or sheet out and point lower. Eventually, due to the physics involved, when the windspeed gets high enough, windward progress becomes impossible and you'll either capsize or come to a stop.
sm