Back when it was just "US Navy Carrier", with only a 4-pound weight limit, the available engines were the Fox 59, McCoy 60, and Dooling 61. The only planes that really took advantage of the unlimited power were the twins with 35's or better.
Class I started in Detroit under the name of "40 Carrier", with ST G21/40 as the targeted engine. When the CLCB put into The Rule Book they came up with the Class I & II names and slipped in the .65 lid.
The Nostalgia rules are clear enough. The sticking point is that local events are still obligated to comply with current safety standards. At the moment, there are no high performance events that allow more than .65 cubic inches. Of course, a 29 + a 36 would be legal.