IMO I would go the turbo route also. You can build a turbo engine for great mpg and performance. With a good turbo match you can control when you want to make power or not.
Here's a pic of a good friends car that we turbo charged and ran a Haltech management system that I tuned. The car gets decent fuel mileage on E85 and ran 9.40 @ 145 mph in the 1/4 @ only 10lbs, it should be running in the low 9's this year when he turns the boost up. Compression is at 9.5:1.
