The new models have engines that are smaller turbos, that part is true — but they get >30% better fuel economy, and they output more power.

The reliability might become an issue down the road especially in hybrid engines but the data so far don’t seem to support your assertions. The one exception is maybe the Tundra 3.4L but that seems to still be ambiguous as to the root cause, and may just be mfg process error.

This doesn't really mean anything. You can build an engine at any point of the spectrum from naturally aspirated to turbocharged, to turbo-compound, to actually not having any pistons at all (e.g. the "turbofans" that we put on airliners). What you want is to match the engine to the machine and build it out of the right materials.

Most people don't know shit about engineering and have weak intuition about materials, stress and physics in general. What the common person thinks about a random engineering topic literally does not matter, because they are 90% wrong about everything. Regarding cars, it's more like 99%. People still recite torque figures like they mean anything, ffs. That bad boy with 200 Nm at the crank? Cool, I make 150 Nm pedalling a bike.

My previous car before an EV had a 1-litre 3-cylinder engine, a 1.0 TSI. Pure gas, not a hybrid. That's an engine that's rated for 81kW (it actually delivers a bit more than that) and that can do 60 mpg on country roads (regularly). When it came out in 2015, "car enthusiasts" were laughing hysterically at the idiots who'd buy the car and have to replace the engine every 2-3 years. 11 years later, the cars are driving around just fine. The 1.0 TSI, just like the entire EA211 family, is a good engine with no major reliability issues.

> they overstrain them

Debatable. Materials science and engine construction science have advanced significantly since the V6 and V8s of the 1980s and 1990s Toyotas. Almost every auto manufacturer on earth is capable of getting >100hp/L out of a gas engine reliably. Toyota is certainly not the only OEM doing this reliably at scale. This stuff is no longer exotic. Gas engines today are designed from the ground up to be turbocharged and direct injected (and in Toyota's case, both direct and port injected), and built with the cooling systems to match.

> The outcome is a strictly worse engine

No one makes or has made a perfect engine but there's a lot of romanticizing engines from the past. These newer engines make more peak torque, their torque curves start much lower in the RPM band and remain more useful through whole rev range, they burn significantly less fuel when not under load, and the hybrid electric drivetrain mean the gas engine spends less of its life idling or lugging at low speeds and high loads. Whether some of these tradeoffs are worth it is debatable, but in no way are these engines "strictly worse".