Having looked at this thread I see there are two factors being confused. These are the need for power - whether we need a couple of hundred horsepower to do what Series landrovers did on well under a hundred (and with speed limits generally lower than they were thirty years ago), and the spearate question as to whether this extra power can only be gained by increased engine displacement.
The first question is simply a matter of where your priorities lie - the more powerful engine, everything being equal, will be heavier, use more power and cost more, but you are making the decisions. Driven exactly the same the fuel usage will not be very different and could go either way, but the more powerful engine will encourage driving that uses more fuel.
As far as the second question goes, for diesels at least, it is possible to get exactly the same power and torque distribution over a wide range of capacities, simply by increasing boost and fuelling. The unsupercharged engine does not have this option, so the only way of changing the power output other than fairly marginally is to use higher rpm or increased capacity. With the supercharged diesel, boost and fuelling can be increased to give any desired torque at any rpm within the designed speed range, limited only by structural strength, cooling and turbocharger size, so in this case it is incorrect to say there is no substitute for capacity.
The main reason that parts for the "new" engines are so expensive is that for the "traditional" designs, the basic design and development was done many years ago, and the cost of this is amortised over perhaps fifty to eighty years of production. New design engines that incorporate newly designed parts (such as, for example the TD5 injectors) have only a few years production to cover those costs (and usually the patents are still current and there is only one manufacturer, so no competition (compare for example Bosch injectors with interchangeable parts made by Nippon-Denso).
John
John
JDNSW
1986 110 County 3.9 diesel
1970 2a 109 2.25 petrol
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