Most drivers are very reluctant to give power figures for their cars - but Sharpie's motor has certainly got some mumbo, combined with the rest of the car being very well set up and balanced it is very quick and well towards the pointy end. There are possibly some more powerful engines in other cars, including some very trick M4x twin cams from the US of A, in the series as well.
The 2 Ltr Championship used to be part of the Open Class grid, and was a great way for people to share an E30 car between two drivers. It was seperated out from the Open Class grid due to the exact reasons you mention - mostly the safety aspects, as the closing speeds were phenominal between an A Class V8 / turbo car and the shared E30 series cars. It does get VERY busy at the end of a handicap race as everyone bunches up... need to have some very large cojones for some of the moves made (not by me I may add).
Lots of drivers, myself included, have moved from the E30 Class into 2 Litre Champs, either developing their E30 car or into other E36, etc. The class has certainly developed in terms of numbers, and also the speed of the front guys is getting quicker all the time - many lap records were broken this year. I think once I have finished "developing" my car and get back on the track I will be further away from the front than when I started!
If you like this vid, try and find the one from Kayne Barrie running in Nick Thompsons E30.. another very quick car being expertly driven. Here...