Well, wspohn, we've now got two years of experience running these things on the track and the road, and we've delivered a number of LS3-powered Miatas to our customers. The cars have proven themselves to be quite effective. With the right rubber, you can put the power down nicely - don't underestimate the effectiveness of that Getrag LSD.
Actual experience: in 2008, the fastest Miata we'd ever had around our local track (small and tight kart track, definitely a handling track instead of a power track) was my Targa Miata with me driving. I brought Elvis, the LS1 car discussed in this thread, out to try it. Elvis was running the same suspension that was developed on the Targa car, but the car was in full street trim. Leather interior, CD player, carpet and spare tire vs stripped out caged rally car. The weight difference was on the lines of 400 lbs, 2100 vs 2500. Which, by the way, is healthily motivated by a 350 hp engine.
My first timed lap was 2 seconds faster than I'd ever gone in the Targa car. It became clear fairly quickly that the chassis was able to handle the power. Yes, wheelspin was possible in lower gears but that's the case with my Locost as well. It simply requires a driver with an analogue throttle. So far, nobody who's experienced one of these cars has used the term "disappointing". What really opens people's eyes is the way it accelerates above 100 mph, where aerodynamic drag is simply shrugged aside.
So I'm sorry if it's "old hat", but the small rwd sports car concept wasn't new when the Miata came out in 1990 - and people still liked that. The difference between the LS motors and the Ford is fairly large when it comes to ground clearance, packaging and weight distribution. We certainly weren't the first to put the LS engine in a Miata either, but I'd like to think we're the ones that made it a much more acceptable proposition. We now stock a full collection of parts, so that we can supply every single nut and bolt you need to install the LS376/480 crate engine in any 1990-05 Miata. The 376/480 is a far better value than the LS7.
http://www.flyinmiata.com/V8/ for details on parts and turn-key prices. In the last two years, the number of V8 Miatas has exploded.
Anyhow, enough of that.
Yes, the "Martini Miata" is indeed getting an LS engine in order to run in the Targa Newfoundland. It's interesting, I'd expected the Miata to excel in the tight twisty stuff and suffer on the fast open road. It turns out the opposite was true. Because you're dealing with unknown corners, tight rally stages end up being more of a "point and squirt" proposition. The Miata's good handling helped, but I just couldn't carry much speed through the corners and got punished on the straights.
The fast sections were different. I usually had better sight lines, and my small size allowed me to adjust my lines nicely. So I could run on momentum, and the car proved to be quite competitive there. Still could use some extra speed, of course, but when running between 80-100 mph the Miata was strong.
The goal with the V8 version is to make point-and-shoot much easier - I'll be able to teleport between the corners. I'll also be able to get up to speed faster on the fast stuff, and can actually leave more margin of error in the corners. The engine going in the car is actually the one that we originally put in Elvis, the car at the beginning of this thread. Elvis now has an LS376/480 crate motor. I don't know exactly what we're going to do to the LS1. The goal is a very wide powerband and anvil reliability instead of peak power, as flexibility is most important to us. We're also not planning on spending a bunch of money Our machine shop has turned up an LS2 crank and piston set sitting around, and we're talking to some other suppliers.
The Targa car is also going to get a T5 trans. Partly because it'll let us test this out, partly because it'll be lighter. If we can get this car to the start line at 2300 lbs with spares, I'll be very happy.