The 1985 - 1992 BMW M3 2.3L NA I4 had 192 HP in US emissions spec, so it was perfectly possible to get good power out of smaller displacement.

Of course the price was low-mid range torque, something big displacement engines have in spades. You have to thrash an s14 to get anything out of it.

Of course the 2.3 is turbocharged, so the displacement figures aren't directly comparable. A closer comparison might be last model year's 3.7L V6 which produced around 300HP.