This is for a different application tho Tun_x
Lets put it straight and simple. For Drag racing, you need outright massive power, and the best way to do that is with large displacement, the next best is to feed the engine more air(duh), Add a turbo! The 7M came stock as large displacement performance engine with a turbocharger.
The 1JZ as I recall, was developed for the 2 liter racing class(along with the RB25 and RB26, if i may go out on a limb and say so), and is a much more modern design. The M series engine, if I recall(again) was designed mid 1960? Now obviously things have changed dramatically from the first M, to the 7M, Turbo chargers, electronics, engine management, and for one, Power!
Again, I'm not pointing out only the Bad, I just do believe the 1JZ would make a better road race engine. Newer is always better, right? The 1JZ was designed in the late 80's, and was put into a Supra for the 1989 Model year I believe. And since the 1JZ's "race intentions"(It's killing me I cannot find that source!) it has a more modern, and sophisticated if I dare say, Oiling system than the 7M(yes, I have done more work on a 7M than change the spark plugs). Also, as proven between the 1JZ and 2JZ head flow tests, the 1JZ has a much higher velocity compared to the 2JZ, which flows better. When racing on a road course, Wouldn't response be great to have?
I'm not forgetting the Group A Race cars! But since it would be a lot of work(and money I would assume) to find a Group A race car from 1988 not many, if any of us enthusiasts would know what the oiling system was like! I know Ian(I.J.) has a Group A oil pan(Magnesium, and has a large sump), I was looking at a Group A, and a 1JZ/2JZ pan, and they are very similar. Newer technology usually puts things for the better, and you know Toyota designs for longevity, so a LOT of money is spent on that stuff.
These are two of the Best engines Toyota has ever made. May even be the last of the powerful motors from Toyota for years to come, Both motors came in flagship cars, we are lucky to be able to enjoy either as easy as the other.