To be competitive in its class, the new Type R needed at least 270bhp+ upwards. Honda engineers admitted if they wanted to do that on a mass production vehicle with an n/a engine which would be EU compliant and meet emissions regulations etc, that engine would need to be at least 3 litres - which would add a lot of weight and upset the whole balance of the car. Hence why they went with the 2.0 Turbo instead, like most are doing, but in doing so they've had to change the characteristics of the engine.
It still has Vtec, but it doesn't engage in the same manner as before (and there's no need for it to do so really, with a turbo) and is used instead to boost torque, smoothing the transition before the turbo spins up and thus reducing lag slightly.
Car Magazine's review says it still has an insatiable appetite for revs and isn't peaking too low like a turbo diesel does; it just tops out at 7k rpm instead of 8.5 or 9 like before.
