Those same "modern engines" have become LESS reliable, not more.
The regulations have forced manufacturers to undersize the engines, add boost, run excessively lean, spec lightweight oils, and remove as much mass as possible while still getting enough power output to be acceptable to buyers.
Trouble is, all of those things are problematic from a reliability standpoint. Those "longer oil change intervals", for example, are NOT a benefit to the consumer. They have been engineered to reduce manufacturer costs and survive to the warranty mileage - but no further. The use of lightweight oils increases fuel mileage, but at the expense of higher wear. The use of boosted (turbocharged) engines allows the manufacturers to use under-sized engines and claim very low fuel consumption, but in real life the turbo runs far more often than the "specs" quoted, and the result is worse fuel economy, lower torque, and shorter life.
Now, to be fair, if we go back 20 years we see real improvements that were driven at least in part by regulation. Electronic ignition, coil-on-plug, closed-loop controls, variable injection, variable valve timing, tighter machining tolerances, etc. These change resulted in much better performance, both in efficiency and power output. Trouble is, the regulators couldn't leave it alone once we achieved really solid performance....so now we have pushed the technology farther than it should go.
All of that being said, a lot of these things COULD theoretically be implemented in aircraft...but the complexity is problematic when the volumes are as low as ours....and the vicious cycle continues.