Engine management has been using PLDs/FPGAs for years.. look at Autronic, Syvecs, Pectel, and a bunch of research engine management systems that are too expensive for mortals to buy. If you're building something in 2020, you'd be shortsighted to not put an FPGA between the engine position inputs, and your time-sensitive outputs.
> The engine position sensing isn't something that requires a lot of specialized hardware ... Determining engine position is pretty easy with most microcontroller's built-in timers.
Modern engines are not mechanically monolithic. Cams and cranks are coupled, but they're subject to tolerances and are affected by things like acceleration, belt stretch, and harmonics at different RPM ranges. Determining what's /actually/ going in inside an engine with any accuracy is not easy at all; thinking otherwise is naive.
> It is certainly something that is easy to cause engine damage if you get it wrong, but the application for these is usually offroad vehicles.
I don't see a connection in the two points of this statement. The 'offroad vehicles' I work with, have engines that are 10x the cost of the 'onroad' equivalent.