In theory the Wankel engine had a lot going for it. It was quiet, had
few moving parts and was capable of high revs whilst, at the same time
being very smooth with a reasonable power output.
On the downside the fuel/oil mix it ran on resulted in polluted exhaust
gasses - very unacceptable in this day and age. Fuel economy was not
very good and the engine, although simple, required more frequent
maintenance than its normally configured counterpart. Initially, at least,
the rotor seals were a significant wear area. The engine also ran very
hot and heat dissipation, especially when the engine was mounted in
a motorcycle, was a considerable, although not insurmountable, problem.
That being said, I think that for 'one-offs' and 'specials' where engineering
skills and innovation are used in order overcome inherent problems enabling
the build of something different from the norm, there is a place for the rotary
as evidenced in Jay Leno's video.
Ken.