Here's my take on it...
It was so much easier to get power out of a small block V8 and bolt it directly to the existing transmission, that back in the day, nobody even thought about souping up these "little" motors. Even today, you can buy a running 350 and bolt it on and have more power. Like everyone and their brother did for decades.
The 292 specifically, was only offered in trucks. Which of course would greatly benefit from a V8 conversion no matter if it's a work truck or a weekend warrior. There was no NEED nor desire for the underperformer.
WE of course... are different. Going against the grain has always been more or less my way, and I've found this forum to be a great help during my project. There is a market for performance parts, but not big enough to be profitable in large scale. - there is no large scale. That said, performance parts are out there. And more on the way, but for a price of course.
Arguably the biggest bottle neck with the design is the cylinder head. For a serious power increase while maintaining driveability, a completely new head design is really the way to go. You'll find info on these forums here on "12-port heads".
I don't know the 292 in detail, mine is a 230. But it is listed at LESS HP than the other smaller sixes. So yea, it makes torque. Without looking at rod ratios and such, sounds to me it would not be a good candidate for high rpm power (without heavy mods), none of these sixes really are.. But perfect for force feeding
My opinions only of course.
