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Nah lift can pass emissions, new Honda engines still have variable lift. I think it's a matter of most manufacturers feeling like it's not worth it, they'd rather just lose some top end, or lose some low end torque, and save the money (I don't know how much they save, this is speculation).
The rod ratio is quite bad already so stroking it would likely lose some revs, and the specific output would go down. Boring it out slightly to 2.2L could make 250ps more easily achievable, more top end focused cams/intake could put the 7000rpm torque at perhaps 175 lb-ft, peak power at 7500, that would get you around 240hp. Still would need more revs though. 8500rpm would make things pretty easy, but I'm guessing that takes rather extensive modifications.
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