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Isn't the fuel economy advantage getting a smaller engine than you would have, then add a turbo? In other words, puting a turbo to what you have adds more power - but no fuel economy.
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Exactly right.
For all you guys that think downsizing isn't necessary, running a 2 liter engine at atmospheric pressures (let alone under boost) provides WAY TOO MUCH POWER to make use of in an FE context.
That BSFC sweet spot does not need to get bigger, it needs to move South on the map!!!
Tiny motors let us run at or near atmospheric pressures without putting down excessive power. That means we can run with greatly reduced pumping losses (not to mention weight, reciprocating mass, and friction) without getting speeding tickets. The only reason that turbo is there is so we can take our tiny 1.3L engine on the highway without being demolished by a semi. Get it now?