F1 cars in the beginning of the 1980s were making well over 1000hp with about the same size engine and 4 cylinders....
True, but those engines also weight well in excess of 100 kg. This thing is a third of the weight of some of those engines, and smaller overall in dimensions. That's pretty cool I reckon. You could conceivably put this thing in a bike!
As for the diminishing power of race cars overall, I agree. It's bloody horrible seeing them all neutered in the name of cost-cutting and economy.