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I do think a bigger engine running at a lower RPM can do pretty well, but there are a few mechanical factors that will hold it back. The numbers are good, but the potential is much more limited. I have a SV 650, and I've seen over 60 mpg in normal back-road riding - which is pretty good IMO.
A small engine running near its peak torque and close to WOT has significant advantages in efficiency over the larger engine running low RPMs and small throttle openings. That's fine for some things like mileage competitions, but in the real world it doesn't leave much for passing or accelerating.
For the competition, a streamlined 125-250cc single would most likely be the most efficient, but your CTX can do pretty well and still be a very useful all-around street bike.
I would like to see more stock bikes run in the competition, just to see what they can do compared to more purpose-build streamliners. I am impressed with what people can do with their small homebuilt streamliners though.
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