I don't think you've p***ed anyone off either Fastflow
My responses may be a bit long but that's only because I try to explain the why's rather than just saying something is good or bad.
Don't let me put you off using a diesel engine - just make sure you know all the details first (another one - diesel fuel is 15% heavier than petrol

- less volume of diesel fuel is needed than petrol but it weighs more - weight is everything for a hovercraft). The only two advantages I can see of a diesel are the lack of an HT system and their low-revving nature (and the fact that diesel is cheaper than petrol per unit of energy) . I'm not at all sure that there are any others but feel free to convince me otherwise?
Hovercraft are almost unique in that almost every part of the craft has an effect on every other part. It is very easy to end up in a spiral of "enhancing" that results in something that doesn't work well (or even not at all!). The Donar craft certainly looks really nice but I have to ask the obvious question - [cynical mode ON] if it works so well why are there not hundreds of them out there?? [cynical mode off] In my view, the part of a hovercraft that could do with further development is the skirt system - it affects drag, hump performance, stability and efficiency - almost everything!
Bike engines can be a good choice but you need to look at where they develop their power. For a cruisng craft you really want peak power as low down the rev range as possible - this will help reduce noise and make the transmission system simpler (it's a bit difficult to get a belt reduction drive to operate at 200000rpm for any length of time

. The BMW engines are a good choice as they are relatively low revving units. For cruising, reliabilty has to be top of the list when choosing an engine - you need one that will happily run day after day, ALL day at 2/3rds power. As Jon says, the craft must cruise at 1/2 power under ideal conditions - the other half is needed when things get hairy!
The chances of picking up an old Subaru engine must be almost nil nowadays. There are, however, tons of suitable small aluminium car engines out there. Almost anything will do (it's hard to find much under 100HP nowadays), but look at the peak torque RPM and the max power RPM that will give you some idea of it's most efficient operating speed - the lower the better.
If you are really serious about this stuff then I would recommend joining the club - there is a wealth of information available on this site to members, including a 40 year magazine archive that has technical articles and examples of almost every type of hovercraft design ever made.