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Chevy has already did all the work you are thinking is hidden for some reason in a 350 small block designed in the 1950s they tweaked it all the way into the 90s and made it better but completely leapfrogged it with the LS motors. Go find one of the millions of good 5.3s in the junkyard pay $1500 for it, get a standalone computer and harness to run it, and be done. You still will be lucky to get 20 mpg at 65, 16-17 at 80, but it will be a good 20% better than anything you will be spending 3 times as much building designed in the 50's.
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