As many simulated racing games, the very FIRST thing I do to anything to make it go faster, are not engine, but transmission upgrades. With what's in the jeep, from what I have read, you would need to pretty much change everything. Changing out the transmission, drive shaft (like going carbon fiber), changing the clutch, flywheel, and even changing out the diff can shave pounds off of the jeep and give you more power to the wheels, without actually increasing it's power.
Another thing you can do is take out added weight which will give it more power. Instead of using the factory seats, switch them out for lighter racing seats. If you're mechanically inclined, then take off the stock hood, and make a carbon fiber hood to shave weight. I am sure you can do the same to the doors as well, or leave them off and build a door that resembles the removable doors like on wranglers that have the cargo netting. Using steel wheels? Try to find an aluminum counterpart and switch those out, shaving even more weight to the Liberty.
Everyone has a preference, but as I read from everywhere because as a computer technician, I am knowledge hungry. From what I read, and understand, several things do not work because of the engine was designed to give you the mac straight from the factory. Cold air intakes don't work because it doesn't get enough air to make it worthy. BUT if the CAI is lighter than what's in, it might be worth it to you. Making a new hood? Design it to work with the CAI to give you the power you want.
Everything is built on a dream. If you want to dream big and "try" to prove people wrong, then do so. Document it, take pictures, and support the data. Just because something hasn't been done properly, doesn't mean someone else can't. Read what didn't work and use common sense to apply if it can actually be done. You don't take a surf board to a mountain and try to use it as a luge.