I can believe that it's true on average and that it can be useful for lots of people. I wonder if nowadays that's still something biological, or rather cultural indicator like pale skin in middle ages, or tanning more recently, that a person has much free time on his hands so is socially above average.
> associate it with power in social situations
I never seen anyone doing that. I never seen person with above average muscles in position of power. Is there some research about this?
Bit of laugh for you: http://www.youtube.com/watch?v=wlLpCh-lE54&feature=player_de...
Anyway, getting back to your original point, correlation between height and income is well established (e.g. http://www.apa.org/monitor/julaug04/standing.aspx) It doesn't seem unreasonable to suppose that other aspects of an imposing presence, like muscularity, would also effect income. (Up to a point. I think there is social pressure against excesses of muscularity.)
I don't know what research has been done, but my own snap judgements of unusually muscular people tend to be negative; couple the muscles with an exaggerated strut and they go strongly negative.