Or how about the engine in my e36 M3? 3.0L for 240hp, an engine designed in the early 90's and then watered down to meet US federal standards. How much does GM need to make 260hp? 3.8L and a supercharger. That same engine will only make 200 horses N/A. This is OVER TEN YEARS LATER, and they still can't make a displacement-efficient engine.
Their 5.3L engine only makes a measly 303 hp. BMW can make 30 more with a 3.2L engine (the current M3 engine).
Yeah, I agree that most races are on the freeway. But you're forgetting so many things. First of all, a Corvette is in no where NEAR the price range of an EVO or STi. Second, in an equally priced street race, between, say a stock '06 Civic Si and a stock '06 Mustang V6, the Civic already wins on both weight AND power. And it does it with a 2L engine. The V6? 4.0L. Twice the displacement for less the power.
Not only that, but the engine will still run 10 years later. Why do Japanese and German cars still hold their value years later? Because they stand the test of time. They're not economy wagons that use a bus engine to do a car engine's work.
Maybe you would rather choose price over efficiency, finesse, reliability, resale value, and overall good engineering. I wouldn't.