Maybe Victa just needs to design to engine to be like the Stihl 4-mix engine just depends how the emissions rules are and of course the patents. Stihl is producing engine that are 4 cycle but use 2 cycle mix which allows all positions operation of brush cutters and back pack blowers. These engines has no separate crankcase oil requirement as the fuel mix provides the oiling. Now these engine are about 1/3 to 1/2 the size of the 160cc Victa engines but I would think the technology behind the Stihl could be applied to an larger engine.
If I remember correctly the main reason a 2 cycle has more power is mainly because it produces power every rev vs the 4 cycle coasting every other rev.
BTW we are seeing 4 cycle trimmers and blowers here with separate oil in the crankcase and they are simply not holding as they are failing because of oiling issues especially from operating at sever angles. At least that what I see in the shop here.