Exactly. How well an engine uses the air (BSAC) and fuel (BSFC) and what it makes HP/CID is what matters.
An engine making 2.1 HP/CID is much more impressive than an engine making 1.6 HP/CID making the same horsepower.
In the above exaggerated example, you could have a 380 inch engine making 798 HP and a 500 inch engine making 798 HP and for me, the 380 inch engine is much more impressive.