The major issue is parasitic drivetrain loss from having to push the cylinder which pushes the cam which turns the flywheel which friction fits against the clutch which friction fits against the transmission flywheel which turns dozens of metal gears which rotates the driveshafts. Direct drive implementations where the engine's output shaft is mated directly to the axle are much more efficient and have been used in massive ships, but are entirely impractical for use in passenger vehicles. There's the Otto, Atkinson, Wankel, Scuderi and diesel cycles for liquid fuel combustion, and all have tradeoffs leaving them competitive with eachother instead of having a clear best solution thanks to everything else required to transfer the power from the initial combustion.
In short, we've hit the mechanical engineering dead end for massive efficiency gains with ICEs. It's all chemical from here, and thus gets much more expensive to run.
Something more radical has to be done about the entire crankshaft and a 4 piston design. Believe me, lots of smart people have tried that as well, for many decades. Because the payoffs if you did find something are huge.
There are lots of YouTube channels needing into all of this. Engineering Explained is a good one if you want to understand the level of how advanced modern engines really are.
https://en.wikipedia.org/wiki/Engine_efficiency#:~:text=Mode....
Mercedes has devised an engine that achieves more than 50 percent efficiency.
https://www.roadandtrack.com/motorsports/a15049580/mercedes-...