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It would fit where the cylider head is with no issues; you'd still be shorter than a regular OHC cylinder, though a bit wider; the front of the engine hangs out in open space, so the extra width wouldn't mattter, and would still be less than the width of the case.
No reason to turn it 90 degrees, either. 1:1 gears are 99% efficient, unless run at right angles. A cogged belt would be quieter than gears, and just as efficient.
There's no clutch lever, so it probably use a centrifugal clutch, like most of the semi-automatics. That will eat up more efficiency than anything else.
Didn't notice the noise the first time; watched it without sound. These engines have a lot of internal noises coming out of them...I tended to assume it was due to things like the timing chain, but perhaps not...you would barely notice them on a gas engine, with the usual putt-putt going on.
As to just taking the cylinder and piston/rod off...the crank would now be really otu of balance, so you'd have vibration issues to deal with.
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