Apparently I've been watching F1 longer than some of you. Entirely possible, as I've been a fan since Jim Clark and Graham Hill drove for Lotus.
Flat-12s were stressed members in Ferraris and Brabhams in the 70's, before the turbo era relegated everone to V6 or L4 engines since they were only 1.5 liters. Flat engines weren't given up for packaging or C/G, they were given up for ground effects, the other big development of the turbo era. Flat-engined cars had very low rear bodywork, giving a clean air path to the rear wing, but no room for under-body venturis. Today's flat-bottomed cars might return to this configuration.
The current V10s (up to last year) weren't chosen because they package better, necessarily, as some teams would still run a V-12 to get that little extra mmmph of power or a V8 to get even smaller packaging; the V10s were mandated by the rules, first at 3.5 liters, then down to 3. One of the engine rules also limits materials because very exotic, expensive, and potentially toxic alloys were being used.
I have never liked fuel limitations. Granted, Mosley didn't suggest you had to start with enough fuel to finish, i.e. no pitting for fuel, he only said you should only use so much during the race, but that still makes an economy run out of the racing, rather than racing.
I like the idea of free engine rules, even if it's limited to gasoline engines (meaning no diesels or turbines). That was part of the excitement of the series before the '90s, keeping up with engine technologies in the cars: V-8, V-12, flat-12, turbo V6 or L4, and if you go back far enough (the early 60s 1.5-liter NA formula) you even had a flat-8 and a laterally-mounted V-12!
Also keep in mind that Mosley is trying to save F1 from the defection of the many manufacturers who have yet to sign on to stay after the current Concorde expires. If they're leaving to form their own series, they're unhappy with how things are presently. If you want to entice them to stay, you HAVE to make some changes somewhere. While recent rules changes for the cars have been pretty much little aero adjustments, this year's engine rule, etc., the big farce to me has been the experimental nature of trying to find a qualifying setup. Maybe this year's "elimination rounds" will make life more exciting. I've always despised the single-car qualifying in whatever guise.