Reading through this thread, I'm largely in agreement with Isaac Zachary - reducing rotating mass is going to have a negligible effect on economy. As long as you manage that inertia productively, it isn't a loss.
The areas where you'll see gains are in reducing parasitic losses, and to some extent, things that increase thermal efficiency. Some tricks modern engines use, in no particular order:
-Elimination of belt drive items (e.g. fan), electric power steering
-Variable displacement oil pumps
-Variable displacement water pumps
-Higher compression
-Low friction coatings
-Low tension piston rings
-Atkinson cycle
-Reduced displacement
Maybe you can get away with a highly efficient V6 that makes similar torque/power to an older V8?
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