It's not really an old chestnut if it's true though, is it? I used to think car engines should be a great alternative. Even when I learnt to fly and learnt about the basic differences between the two types I didn't latch on to the engineering side of things. It's only once I started building my own plane and seeing if there were other options out there did I learn more, quite a bit from this very forum. Quite a bit from facthunter, but also others
In my mind the big hurdle that will never be hurdled is the fact a car engine is designed to run at relatively low power settings most of the time, with fairly short bursts at high power. An aircraft engine is more like 70-80% most of the time, and small aircraft 100% on climb. You could be climbing for five minutes. That's the equivalent of a car going onto an impossibly long salt flat and just flooring it and driving at its top speed for five minutes. There's a reason top fuel dragsters are rebuilt after every run.
That reason alone makes the car engine stand on the back foot from the get go. No manufacturer is going to spend the money engineering their car engines to suit those scenarios 'just in case'. But there are other reasons too.
I think the only thing that might be comparable that could be converted might be marine engines. But they're not exactly cheap, and lets face it, the big appeal of car engines is price.
Having said all that, I would love to build a Pietenpol Air Camper. I would use a Datsun 120Y engine 😊