Right, power does not disappear.
But the difference between VA and Watts is that VA is not power. VA is just "possible power if the power factor were 1.0," i.e. if the current and voltage were in phase.
So when the OP says the current is 6A, then if the voltage is 120V, the VA is 720. From the OP's info, the mechanical power provided by the motor is then supposedly 1.6A * 120V = 190W.
The discrepancy between 190W mechanical power and 720VA "apparent power" is then somewhere between these two extreme cases:
1) The power factor is 1.0, so the electrical power delivered is the full 720W, and as you say, the missing 720W - 190W = 530W must be dissipated as heat. That will be one hot motor!
2) The power factor is very low, the motor is 100% efficient, and the electrical power delivered is only 190W. The discrepancy is all due to reactive power, the "extra" current is flowing but not providing any power to the load, and no heat is developed (other than the I^2 R losses in the conductors attributable to that extra current.)
Hope that helps.
Cheers, Wayne