The IO-360 is producing 0.3074 HP/CI.
Yeah, at 6500 feet AGL and 2500 RPM and 61% power. At sea level it would produce a lot more at 2500 RPM. At full rated power it's .5 hp per cubic inch, which is one reason it lasts as long as it does. Auto engines can produce a lot more per CI but they often suffer the effects of it, as many converters have found out. The 100-hp Continental O-200 can be forced to produce 200 HP too, at 4000 RPM with a tiny toothpick prop in the Formula Vee racers, but it sure doesn't last its 1800 hours anymore. They run a chunk of stout cable around the engine and anchor that to the firewall in case the engine throws a rod or otherwise seizes and tears itself off the mounts. That can be bad for the CG.
If it was so easy we'd have many flying examples of some particular engine, which we don't. The VW is likely the most common but if they're really examined you find that burned valves and broken crankshafts are distressingly common. Many of the "factory" VW conversions use forged cranks, stronger rods, aftermarket heads with more fins, bigger oil pumps, and so forth. The result is an engine that's as heavy and almost as expensive as an aircraft engine. If you Google images of, say, Continental A-65 or C-85 cylinder/head combos and compare them with the VW cylinder and head, you'll see a big difference in cooling capacity.
Other engines that I can recall having been tried in the years I have been in homebuilding (since 1972) include the Ford Model A, Corvairs, various Chev small-blocks from the 283 to the 350, Buick aluminum V-8 (263 CI?), British Rover V-8 (Buick knock-off), Ford 351, various Ford and Chev V-6's, Corvette LS1, Honda Civic, Subaru, Mazda rotaries, Suzuki three- and four-bangers, and likely many more I don't know about. Not one of them has been successful and cheap enough to have been widely accepted, and many homebuilders have become so fed up with the endless tinkering involved in making them run right that they pull them off and install an aircraft engine instead. The most successful conversion I can think of was the Geschwender Ford 351 conversion that saw extensive service in "Experimental" Pawnee crop sprayers. Even the old wizard Steve Wittman, I'm told, pulled the Buick V-8 off his last Tailwind after he had too much trouble with it.
If I had the time I'd love to do another conversion, but I'm aware of the huge amount of time it can take and the expense that can be completely unrecoverable. The Glastar that got the Soob ended up selling for at least $75K less than it would have been worth with the Lyc; similar Lyc-powered examples were selling for that much more at the time. And the entire installation ended up costing as much or more than the Lyc, after all the dorking around.
I'd like to see a Jaguar V-12 in a small P-51 replica. It should at least sound decent. Failing that, an old Navion converted to a taildragger and having a 350 with a redrive on its nose should get the blood going about as well.
Dan