The Power Wagon and Rebel trims are a bit confusing. Ram doesn't have the 2023 build and price up yet but looking at CarCostCanada shows identical base prices, except that choosing the Rebel is actually a -$2895 package. The implication is that the Rebel is a package on top of the Power Wagon that removes some of the off-road capability and adds its own aesthetics. To me the only compelling reason to choose the Rebel over the Power Wagon would be if you want/need the diesel.
The other option is to get the base Tradesman and add the $8495 Power Wagon Package to it, giving you all of the Power Wagon's capabilities without the fluff.
Apologies, I should've been clearer in pricing in the write up.
You're not wrong -- the cost difference between the Power Wagon and Rebel is close to $3k in favour of the Rebel. The Rebel does give up some notable off road goodies (like the front locker and disconnecting front sway bar, plus the PW's longer-travel suspension), but the Power Wagon is significantly limited in its payload and towing capabilities, which makes it a bit of a dud as a 2500-class truck. The HD Rebel will tow a LOT more than the Power Wagon, and is only moderately worse off-road. And let's face it, an enormous 3/4 ton pick-up isn't the best rock-crawling choice out there anyway if that's your primary goal, so the Rebel should be able to go most places people would ever take a Power Wagon.
Even more interesting in terms of pricing, the Rebel 6.4L with the 12,000 lb Warn Winch option added puts it at almost exactly the same cost as the Power Wagon, which gets the winch standard. Want to go for the diesel? That's almost $10k extra, disallows the winch option and actually tows LESS than the base 6.4L.