The suspension design in the MR2 is crap. Sorry to say. I own one and I am telling you it is far from optimal for a performance car. My 3rd generation Honda Prelude that I had in High School had a better design. So, the tires are always working at less than optimal angles to the pavement. Even if you can find a way to keep a transaxle from turning to slush you won't be able to put the power down. There is SO much engineering that goes into cars that can do sub 3 second 0-60 numbers on street tires. Seriously, I have been struggling with traction in the ZZW30 for years and have only made small incremental improvements. Yes, the car is very fast but really only in 3rd gear and higher. It just wont hook any lower. Maybe if I put giant balloon tires on the car it would hook but that would take away from the responsive handing and again make the transmission more likely to explode. This chassis is IDEAL at about 350 HP and that is right at the point where reliability ends. So, why spend money to build a 500 HP 2zz. At that point you may as well step over to Honda honestly just for the aftermarket transmission support. There are zero sprung hub twin disc clutch setups for the C series transmission but a mountain on the Honda side. That is what you are going to need to hold that much torque and have a street-able car. Why do you think Lamborghini historically did twins for their street cars? It is certainly not a sales feature, it is just for drivability and holding capacity.
Some may call me a hypocrite for building a stock block 2ZZ for 20 PSI and saying this. But I like the challenge of tuning and I love the sound the 2zz makes way more than a K series. I specifically went the 2ZZ route because of the sound. It is just my preference. If that is not your goal and you really want that stratospheric power to weight the K is better. For 350ish the 2ZZ is best. The car will be crazy fast and the math shows that with a little bit of chassis weight reduction that is roughly equal to modern cars in the mid 500HP range like Porsche, Ferrari, McLaren etc....