The S7's balance (and lots of other things from other cars) is indeed wrong, but it's not a bug, it's an oversight and/or laziness.
Also, the S7's V-8 is very compact and light. Displacement is not size.
That does not matter. At all. Anyone can take a Fiat 500 and make it a performance car. It wasn't meant to anything except what its owner demands of it.
That's not overdone. That is realistic
What should be avoided is arcade limits like not being able to put a V-8 in a Miata. The only restrictions to engine swaps should be as follows:
-Realism [which allows
any engine in any car, depending on modifications made]
-License issues (cross manufacturer swaps)
And that is completely fine.
That's true. And for many engine swaps is a high priority, which provides good reasons to include it.