The turbo/diesel lag should not be a big deal...turbjet drivers get used to longer lags. Add power to a 707 on short final and you'll have that power available by the time you reach the gate.
I assume dieselhawk is part 23 approved? With 160-200 HP that should cover the middle of the GA spectrum.
EDIT: OK looks like not certified yet but working on it. They are also working on larger engines. Hopefully this pans out, there are lots of advanttges to diesel (jet A).
Anybody know what auto engine it's based on? I poked around but couldn't find it. This is exciting, makes me want to start building my own airplane now...