Generally speaking, to cover the gear box / big horsepower development side of the conversation, it is just a matter of money at this point. Find someone who wants to put millions in this (that is what it would take) and it will happen. Or they can just go buy Strega and get the instant fame. I've hung
V8's on airplanes so I know a little about what you are talking about. The car side gives you tremendous power for the money, not to mention low entry costs. Getting that power through a propeller is a totally different story. Literally the entire firewall forward package can be made or broken by the gearbox. What we ended up on the P85 seems to be working well, and it is extremely simple and low cost. But, 450 hp is the most you should really put through a standard fixed pitch prop flange. So if you're going north of that, totally new drive is needed. Geared Drives used to offer one with big power, constant speed options. I've just never seen one actually work. The Thunder Mustang drive is the only one I know of with the most hours on it, and they haven't been so reliable either.. I'd consider those pretty big budget too.
Props that can take 1000 hp are a totally different subject. Because we're not racing WWII fighters, ground clearance is an issue. That makes small props with big horsepower a rather difficult science.
Then you have the airframe.. What is available that can take 1000 hp, lets say 500 mph? Not much. The Legend, before it was a Turbine Legend could. I think we're over what a Glasair III should do, same with a Legacy. When you start developing a new airplane to take this power and speed, there goes a few more million just to design and tool up for 1 airplane.
Now, I'm not sure I follow the comment about spending money in odd places. I mean, to each their own, sure I get that. But, at the top of the Gold in Sport Class, there is some pretty big money spent on things that are definitely needed. I mean, I just dumped an additional $2K into my damn helmet which will do nothing for me speed wise, but maybe I can breathe in a fire. Stuff like that. At the same time, $300k to $500k in a true Sport Gold airplane is totally normal, some have a lot more.
I will not have a carb, or mags either. Now, not to defend mags, but if you know the power setting you are going to run, mags work. Top fuel drag cars run mags. You just can't be flexible with the power setting. I want an airplane that not only hauls ass racing, but hauls ass lean of peak across the country too, so I'm going electronic ignition. Not to mention if you go ADI, the instant flexibility of being electronic is worth a lot to me. But, fixed rpm, fixed power (manifold pressure), spark is spark, and mags don't need a battery.