Big horsepower diesel engines are here, with Dodge and Chevy Commonrails both cresting 1000rwhp on diesel alone if you believe the internet hype. The big power motor of the diesel world is still the good 'ol 12 valve cummins for now, as many top drag racers and pullers still run that motor.
So who will be on top in this power struggle? My opinion is it will be whichever engine has someone design an aftermarket cylinder head first. The fact that diesel engines are making over 1200hp at the crank with ported stock heads is unbelieveable to me, and there is still a lot of room left. I think within the next 5 years someone will be able to make a 2000hp, 3500 lb-ft diesel that is around 400cid displacement if a manufacturer comes to the party with a set of heads......so who's going to step up??