Not really a good analogy. Battlecruisers were quite successful when used for what they were designed for, fighting armoured cruisers. They were not intended to be fast battleships no matter what the press releases said.
Without these manufacturing break through's in casting, forging and machining the aircooled engine could have hit dead ends. At times during the 30s the future of the aircooled engine's ability to compete with the liquied cooled engine didn't look good. The air cooled makers managed to keep pulling tricks out of their bag but betting on what would happen 3-5 years down the road was never a sure thing.
Even though I have yet to receive and read those engine books we corresponded about, I think you are overstating your case and underestimating mine.
I think the battlecruiser analogy it is far better than you are giving it credit.
What was the fate of most Battlecruisers? A record of failure and obsolescence more than success. Why? Because of an over emphasis of one aspect of warship design due to the influence of Jackie Fisher's fantasy. A fantasy that you will always hold the advantage in any combat engagement due to your weapons, speed, and tactics. Fisher forgot the combat rule that you are a target more often than a shooter, and you are only dead once. If you make something that looks like a battleship eventually both sides are eventually going to treat it as a battleship. If you make something that looks like a tank both sides are going to treat it as a tank. The analogy fits the inline versus radial issue just fine with regard to sacrificing protection for performance. Engines protect the crew from crashing to the ground. Using an engine type with marginally more performance when the stakes are life and death for the crew and the nation is wrongheaded thinking. The hope that the expected inline performance would balance against the advantages of radials is a mistake as much as the 1930's thinking that bombers would run away from or shoot down attacking swarms of fighters. Claire Chennault understood this in the 1930's.
Regarding the supposed preference for inlines:
From the Curtiss A-12 entry in Wikipedia:
The A-12 entered service in 1932 and remained in service until 1942.
Engine - "1× Wright R-1820 "Cyclone" 9-cylinder air-cooled radial engine, 690 hp (515 kW)"
"The most obvious difference between the A-12 and the A-8 is the air-cooled, radial engine in the A-12, which replaced the A-8's inline, water-cooled engine. This was a response to the USAAC's move toward a preference for radial engines, especially in attack aircraft. The rationale behind this preference is that the radial engine has a lower profile, making it less vulnerable to ground fire, and a simpler cooling mechanism, which is also less prone to groundfire, as well as overall maintenance problems."
From "American Combat Planes" - Ray Wagner:
"The second example (of the YB-9) was flown November 13, 1931, with Curtiss V-1570-29 Conquerors, the last inline engines to be used on an Army bomber for over 11 years"
In the early '30s it was considered that an air-cooled engine of the power required for future bombers would be impractical for aircraft use.
Armour plate could have been used to protect vulnerable systems if need be.
Pages 195-231 of Wagner's ACP covering the years 1931-1945 are filled with over a dozen bombers having radial engines. The only exceptions are the experimental one-off XB-38 and the experimental two-off XB42. If the gentlemen running USAAC in the 1930's preferred inlines; they did little to implement that preference.
I have requested the search terms that Readie and gjs238 used to find reference to an inline preference by the gentlemen running the USAAC in the 1930's. I would really like to see the article. Perhaps the three engine books I just ordered, partly due to Shortround6's, recommendation may contain the reference to preference. Damn right that rhyme is intended!

For now I think the gentlemen of the USAAC might have preferred blondes (inlines), but certainly married brunettes (radials). Inlines are fine if you're flying within you're own lines, use a Radial to avoid foreign burial. All rhymes double damn intended!

Not enough armor plate could be used without unacceptable lose of performance. If it could have been practical we would have a great many less HE-111 crash sites in England.
Guys help me out. Show me the light by making a better case for your opinions. As always: Thanks for the education.