If there is a difference in power output, between aluminum and cast iron blocks, it almost has to be because thermo differences, between the two.
First there is the cylinder head. I don't know if Blair's resulting differences are with cast iron or cast aluminum. I think everyone will agree that cast iron heads retain more heat, in the combustion chamber. Heat IS power. So, all things equal, the cast aluminum head, will loose more heat, just because it transfers heat faster. But, I know of no one, that is willing to give up there aluminum heads or intake, for that matter. Just those two items amount to over 100lb on a FE and acceleration amounts to Wt/HP. Hard to over look in anything but, maximum attainable speed, read LSR or dyno, read here EMC but, just HP, can't win a auto race if it can't be competitive with weight, also.
That's one type of thermo lose but, therm o-exspansion is another, increasing deck height and decreasing compression. The aluminum head, also grows at the same rate and remember, expansion causes growth, in ALL directions. The block and head both become longer and taller. alum to iron, by a rate of at least two to one.
The cast iron cylinder block and the cast iron cylinder liner, expand and loose heat, at the same rate, steel is also very close to that same rate. The aluminum block and head, looses heat at a faster rate but, you have some control over that.
So, let me suggest a couple of things.
1. Use long head studs, that anchor into the crank case and seal with a copper or gas filled O-ring. That gives the same basic expansion from the block to the bottom of the head, excluding the crank case area, with less expansion worries to the top of the head.
2. Locate the block to head with with four or five, 1/2" dowel pins. Seal the head to block, with o-rings (water transfer) and a flexible perimeter gasket.
With that arrangement and a machined 7075 block, you get at least 1.5 stronger and stiffer block. More than that, because the walls will be what ever thickness you want and a even section, w/o any problems that core shift would cause. As well as somewhere between 1/3 and 1/2 the weight of a cast iron block.
Another option would be to also, counter bore the head, to fit over the cylinder liner, for added support.