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To me the more important issue is not the engines but the manufacturer cash and support. Autosport reported last month that 70% of all IRL teams are "financially propped up by engine manufacturers". Even if that number is not exact, it is clear that the IRL would not look the way it is now without those dollars. Nunn, Rahal and Fernandez would certainly not be around. Penske, Ganassi and Andretti would be iffy or have a reduced commitment. Therefore the car companies have control over this one, that is, if they are interesting in sticking around at all. GM is gone, Toyota is not happy no doubt and based on some recent comments from Honda and the fact that Ilmor is dumping the honda engine after next year because of mercedes ownership, you wonder if that will be the perfect time for them to exit as well.
One issue in regards to the production based engines: By the time you modify such engine and make it usable and reliable enough for 220 mph flat out racing, you could have built a proper race engine for the same amount.
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