Let me address the issues in order:
1. Fuck your mythical 700hp Supra. Stop Toyota nutswinging.
2. Yes, I could build a 30mpg, 700hp highway cruiser. It would have to be a 572 BBC with a 1.00-1.50 gear ratio in the back with a double overdriven T56 transmission. At least the 572 could push that gear ratio. Either that or I just keep a stock 350 and blow a ton of nitrous to it. There's 700hp when you need it, 280hp when you don't. Fuckstick.
3. Compare my engine to an LT1, since it's the closest modern V8 that shares the same design. LS1/6's use different dimesions, but could also apply to my argument here. My car has a 3.73 ratio ring an pinion, 14" wheels, and no overdrive. If you drive an LT1/LS1/LS6 at ~3000rpm on the highway at 55mph, even with its fuel injection, welcome to ~8mpg like I get. On the other side of the coin, with a T56 transmission and 3.46 ring and pinion in my car, I have no doubt in my mind that I'd get the advertised 17mpg of the LT1/LS1/LS6, if not better since I'm not generating as much power and my car is lighter.
In closing. Fuck yo computers. What's the worst thing I have to do vs. fuel injection? Wait 30 seconds with the choke on to warm up before I drive?