Yes,but…
The challenges of creating a “modern” aero engine are significant. Deltahawk, for example.
Diamond, Thielert, and Austro have had commercial success converting automotive diesels for aero use, but the problems have been, and remain, ever-present.
The 1.7 Thielert first generation engines had issues with snapped piston cooling nozzles and cracked heads.
The 2.0 Thielert (Continental) were better but had some fuel system issues.
The Austro engines started strong but now are operating under a 50 hour borescope mandatory service bulletin to look for cracked pistons with only a promise of a fix in the near future.
SMA flopped for reasons I don’t know.
Turbines don’t scale down to a 200HP size well.
I enjoyed a Wankel in an early 80’s Rx7 but don’t think I’d want to fly behind one.
So, tackle all these challenges for a market size as tiny as GA?
Meanwhile, what we have in the low-RPM air-cooled spark-ignition aero engines, work pretty well. Yes, continentals need cylinders every 1000 hours, and yes, Lycoming has had materials and manufacturing defects, but these engines work in the existing fleet of airframes. Redbird fit some 172’s with SMA or Continental diesels, and Piper put Continental diesels in some archers. Mr. Market rejected both.
If a new suite of engines can’t power our fleet, then vigorously defending 100LL until a viable substitute fuel is found is the only way I see to preserve our investments and freedom of flight.
-dan