Making power is legit.
Some people of the time had not gotten out of the Bomber engine vs fighter engine mentality.
The "R"s predecessor was the Buzzard which used the same bore and stroke as the R and the later Griffon.
It used 77 octane fuel not 87 and maxed out at 2300rpm. It also made max power at 2,000ft and rated power at 5,000ft (?). Weight is in question as figures in Lumsden do not agree with figures in Wiki which is supposed to from Lumsden?
The R was a phenomenal engine, Most (all?) did not run on gasoline. Most ran at sea level. most had short service lives. They could set a goal post. How rivals got there was another thing.
The Buzzard was used in some single engine torpedo bombers and in a few (10-15?) flying boats.
It is a hard path for a company to follow to make high powered engines if it's customers (government for one) wants to buy (pay for) lower powered engines and not the higher power engines. An early Griffon Spitfire would have been pretty spectacular at first glance. Using a giant two blade fixed pitch prop and tall landing gear and giant wing to allow for the required landing speed with the heavy engine would have been a lot less spectacular

2-3 years can make a difference in what the customers what. Unfortunately the customers never figure in the design/development time needed for increasingly complicated engines/propellers and airframes.
Designing large engines and airframes that can do 400mph + in 1939-40 means a lot of people finding out about compressibility at about the same time and not in a good way.
In Britian they were trying to jump from the 1030hp Merlin (and some minor improvements with 87 octane fuel) right over the 1400-1600hp range to the 1800hp Vulture and the 2000hp + Sabre and Centaurus engines.. Going to 100 octane fuel allowed all engines to be improved.
US jumped to improved fuel a bit earlier than the British but only around 1/2 way. US 100 octane was better than 87 octane but not as good as British 100 octane (100/120?)
Unfortunately for the US none of the Air cooled radials were allowed any increase in manifold pressure going from 100 to 100/130 fuel. Rich mixture did a lot less for US engines than for British engines leaving the US engine makers to look for other ways of making power, like high rpm in the liquid cooled engines and/or lots of cylinders.
Chrysler was late to party with the Chrysler IV-2220 16 cylinder but I don't know how far back the design studies went. Government contract was dated June 22th 1940. A rather conflicted engine with 16 smallish cylinders (Allison or Merlin sized) but only two valves in each cylinder but running at 3400rpm. Type of fuel they were planning on using in 1940?
Also planning on using two stage supercharging with a turbo for altitude performance. 2500hp for 2500lbs is not bad but the weight may not include the turbo and the intercooler/s so it is a bit deceptive. And the engine itself was very, very long compared to somewhat pedestrian Griffon and the weight gave some people pause?
Getting back to the Wright R-2600. It was first used in the very large Boeing Clipper flying boats. One of the first land planes was the Curtiss C-20W
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and the B-23 bomber.
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A-20s moved the air intakes to the top of nacelle.
In 1939/40 the US had 3 different fighters running around with extended prop-shafts and long pointed noses hiding R-1830 engines trying to figure out how to reduce drag on radial engines. The concept did not work even though they learned a lot. But what they learned was not available for production aircraft in 1939/40.