I'm really hoping that is photoshopped.
It's actually real unfortunately. That's why it caught it my attention, I also thought it was a Photoshop joke, but there was a write up with lots of pictures about the build. I hate it to.
I've never been a fan of any American vehicle or the components from them. But I will admit the newer GM "LS" engines are very efficient, light (for the aluminum ones), and can make HUGE power (that Ferrari wasn't a 'LS'). I might see them as a good option for some other stuff (they seem to be a very popular "swap" candidate - people are putting them in everything).
If we were to be very honest, the concept of putting a Japanese engine in a Fiat really isn't that much different in some respects. But it just seems different somehow. Maybe a lot of it has to do with the execution; if he had done it with a more conservative set up and the engine was completely hidden under the stock hood, it might have been made to look a bit more appropriate (dressed in a more period correct appearance). I really didn't read the whole article but if I'm not mistaken there was mention that the car came to him (cheaply) without an engine/trans and it was really rough. I've seen other classic cars with very clean V8 swaps that worked well and did not seem all that inappropriate. The engine can be made to look more like it came that way. Much like some of the Italian bodied cars that used American power trains back in the day.
I recall several years ago there was a guy that acquired a really cheap Ferrari Dino. This was back when the Dino wasn't considered to be a "real" Ferrari and they had no market value (funny how things change). It had a grenaded engine/trans and the cost to replace them was not worth it. Plus those Dino's were a lot like the X1/9, very underpowered for the type of car. He swapped in the powertrain from a Subaru (mid-engine). It was well executed and for the power/weight ratio vastly superior to the original engine (again, much like the common X1/9 swaps).
Ever notice it's the drag racing guys that often do the most outlandish stuff like this Ferrari (in the earlier photo)? Maybe that's one reason I've never been into the drag racing scene.