In reply to:
Zetec S - This is the baby Zetec as fitted to the late Fiesta, Puma and 1.4/1.6 Focus models. It has been produced in 1.25, 1.4, 1.6 and 1.7 litre capacities. These engines bare no mechanical resemblance to the Zetec E.
Right out of Butron Power's catalog, page 9.
Going smaller would let the engine rev higher, but the lower power output would be a bad thing. Also, it would cost just as much to ship that engine from the UK as it would the Cosworth.