To quote "How to make your car handle" by Fred Puhn p23
"Polar moment of inertia may be described as the dumb bell effect"
Where identical weights are close together say 20 centimetres apart on a common shaft they can be turned easily and quickly. When the same weights are separated by 1 metre of shaft rod the effort required to make them rotate through the same angle in the same time period is considerably higher.
This means the same masses can have a higher Polar Moment of Inertia if the masses are spaced further apart.
In a race car this is why you should try to get as much of the weight towards the centre of the car (the mass centroid).
In the 1200 larger engines do have a large effect on handling. Mainly in the turn in and this is due to PMOI. An obvius benefit of the larger engine is the extra power it can provide to make it easier to get better times on track.
If you look at the X Allan Pitt car that was owned by (X site member??) Dale. It was a very quick sports sedan with just an A series and when it had the 1300 engine it showed up heaps of CA and SR powered 1200's.
Same with Steve Newings 1200 coupe (the giant killer). Many a Hi tech 2000 cc car was plain embarrased by its handling and performance under acceleration through corners and under brakes. Both these cars were light weight with A series engines
Adding heavier components to either end of the car can only increase the PMOI.
I'll shut up now and go back to dribbling in my beard and drinking my slabs. My bias for old school stuff is showing again.