Smaller, High-Revving Turbo V8 in the New Corvette C7?

If there's one thing I hate doing, it's jumping on the "rumor" bandwagon - but with the current C6 generation Corvette coming to an end soon, I'm finding it difficult not to partake in the speculation that GM may be substituting its large V8's for something smaller.

It's no news that basically all manufacturers are going the "forced induction" route when it comes to pushing their vehicles to their limits, but the Corvette is an icon of American muscle! Will it really be the same without a massive traditional V8? Well, as I was reading on The Detroit Bureau,  the new C7 will be targeted towards a completely different demographic. Corvette owners have typically been older American males, so GM wants to cater to a younger crowd with a European-styled V8 that could be as small as three liters, but still deliver around 400 horsepower! Some aesthetic rumors have implied that the C7 may bring back some historic features, such as the split window of the 1963 model - but that rumor is of course unconfirmed.

What I can confirm, however, is that GM’s global design chief Ed Welburn admits that the current interior of the C6 is a massive disappointment, and he is personally overseeing the design of the C7's interior. Since he considers himself a long-time fan of the Corvette, he promises the new design to be "world class," but I'll have to see it to believe it.

Back to the engine, is this a good change? I'm asking myself this very question right now. Since the Corvette's debut in 1953, it has always been stuck to the philosophy of "there's no replacement for displacement," indicating that this is a HUGE overhaul for this sports car. I really can't predict how the C7 will do on the market, but GM really has to make this a work of art in order for it to succeed. There's no word on price yet obviously (which should answer the majority of the comments on this post), but price is really irrelevant at this point anyways.