Right, but define "decent!" 265 HP out of a 2V 6.8L V10 certainly wouldn't qualify as decent in my book! But back before PI heads, that was competitive.
I think he was trying to refer to the competition. A ~400 HP engine wouldn't obliterate the competition, but it would be a significant advancement. But then again, they would be achieving this with larger displacement.
He also admitted that we'd be seeing over 60 HP per liter, which at the very least would put it ahead of ANYBODY's diesel engines!