I don't see why they couldn't make a 2.7L version of their 8AR-FTS engine? The 1AR-FE is 2.7L but non turbo. A 2.7L 1AR-FTS could be 300hp/300+ lbs/ft without breaking a sweat and still be reliable. Add a hybrid option for even better mpg....it's definitely possible, it's just whether Toyota is going to go super conservative like they always do or not???
Straight from Wiki:
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8AR-FTS
A 2.0 L turbocharged direct-injected member of the AR family, fitted with VVT-iW it is able to operate in both the Otto and a modified-Atkinson cycle. Debuted in the Lexus NX200t.[17] Power output in the 2015 NX200t is 175 kW (235 hp) at 4,800 - 5,600 rpm and 350 N⋅m (258 lb⋅ft) at 1,650 - 4000 rpm. The 8AR-FTS engine has Lexus’ ESTEC D-4ST (Economy with Superior Thermal Efficient Combustion Direct injection 4-stroke with Turbo) fuel injection. With separate twin injectors for both direct and port injection, ESTEC D-4ST could perform high-pressure direct injection into the cylinder and conventional intake port injection, or direct cylinder injection only, according to engine speed.[18] Power output in some applications, e.g. Lexus IS 200t XE30, Lexus GS 200t and Lexus RC 200t is bumped up by 5 kW (6.7 hp) up to 180 kW (242 hp) in the same rev range but torque remains the same.[18]
Applications:
Lexus NX 200t (renamed NX 300) AGZ10/15
Lexus IS 200t (renamed IS 300) XE30[19]
Lexus GS 200t (renamed GS 300) L10[20]
Lexus RX 200t (renamed RX 300) AL20[21]
Toyota Crown[22]
Lexus RC 200t (renamed RC 300)
Toyota Highlander (XU50, China)
Toyota Harrier Turbo (XU60, Japan, 2017–) [23]