I take great exception to "It may be difficult psychologically blah blah blah". He acts as though how someone feels about their car is irrelevant. It might be difficult psychologically to buy a car that is grotesquely ugly too, even if it was just as roomy or roomier than a normal looking car. Should we ignore styling as well and ride around in a bunch of transport blobs? If something about your car is "difficult psychologically" for a potential buyer to embrace, chances are, he doesn't buy it.
V8 engines sound better than I4's, and produce the aforementioned torque better than a high revving small engine. The technology discussed actually sounds pretty cool, but a little engine is better for a little car, even if it makes respectable peak hp. Now if they wanted to use some nifty valve control to increase the power and efficiency of an already excellent Hemi, I'd say go for it.
Perhaps they'll say that they will phase out the big cars, and thus don't need the big engines. In that case, why buy Chrysler at all? Oh, wait, they're pretty much getting it for free. Nevermind. I'm depressed now. Must buy Challenger...stat!