I have a 1.6 8-valve in my '88.
It has a AAoA Sumo cam, a Thorley header, a 2.25" exhaust and a Sarge-prepared Weber DGAV 32/34. The performance difference between it and the old 1.3 as a daiily driver was quite noticeable! With 4.625 ring and pinions and my 30" BFG ATs, constant downshifting became a thing of the past. I average 20-21 mpg and hit 65 at 4000 PRM - GPS corrected readings. It still is a bit unnerving to run an engine that "fast" but my bone-stock '93 Sidekick 4-door runs about the same way on the interstate...
If you are running regular tires and a stock drivetrain, the same basic setup -substituted with the FI system - should work well too.