Well, dont really know anything about engines much but from the way the st has been designed i would be suprised if they picked a poor engine. If you look at the volvo 2.5 litre engine in the focus st its just about the best engine on the market. As for the, imo, superb mazda engine, i've had it up to 7500rpm and it didnt go bang
fuel economy hasn't really changed that much for me to be honest, stayed at around 29-33mpg which i am pretty pleased with for a sporty car. The only downside i believe to the mazda engine is the fact that its cramped in such a tight engine bay, which means that is difficult getting cooler air into the engine so cooling may be an issue but people dont seem to have had any real problem.
I'm sure more people who have added mods to the engine will give you loads more info...