There is nothing wrong with the P-38 that could be fixed by wood or Merlins. First, it was designed to use a wing section which wasn't suitable for a fighter. Second, its configuration compromised completely to allow for all the gear that goes with turbocharging was a restriction on its adaptability. Primarily because there was no room in the central pod after the pilot, armament and nosewheel were accommodated. This is not to say it wasn't a decent fighter for a twin but it was short on potential in any other area. A conventional twin might have worked better. Something like the F7F maybe, or a developed XP-50. Or maybe the right single-engine plane was always going to be better, or a twin more suited to multi-role.