Unfortunately dyno rating in those days was what we call dishonest by todays standards. The allmighty ZL1 was putting out under 400 HP, in stock form. I agree though, getting a small engine to make big top end requires RPM and generally, expense, and precise machinery. Bike engines would be one great place to look, there are 600cc bikes now putting out 100RWHP stock, not even 1 liter, but again look at thier ~14k peak powerbands. I am curious about the engine aspects though
I have run into an F1 guy on a board, who says the engines are "nothing anything closely related" to street car stuff and it would be ridiculous to try and steal opinions. I am sure this is only semi true, I am aware that they had run oval pistons for a time, must be quite interesting stuff.
Why pay so much for an engine close to maxed out though? When you can for less money, make streetable and affordable power with a V8. Now if weight is a concern or liters for a race class, then you obviously have no choice. FWIW Honda had a 250cc V8 engine which I believe had a 22 or 24k redline, this would have been many moons ago.