Keeping a fuselage and designing new wings and landing gear doesn't really save a whole lot of money. You still need a good prop (fixed pitch won't do) you need radios, you need an instrument panel, all a lot more expensive per pound or kilogram than the fuselage framework and covering.
Sticking large diameter 9 cylinder radials on the 109 (or similar small airframe) doesn't save much either. Not without a time traveler to help design a low drag cowling.
Lets please remember that the P-36 has 22% more drag (and lost exhaust thrust?) than the early long nose P-40. And the P-36 used a 14 cylinder two row radial of medium diameter.