I've spent a long time correlating this equation back to actual oil analysis results and it's much more accurate for high performance applications if you include the power density factor. As Gary mentions, many N/A engine now put out about 0.9-1.1, hp/cubic inch, so this last multiplier essentially has no effect on the final result. However if you have a turbo that puts out closer to 2 hp/cubic inch, I'd certainly use that knockdown factor when determining initial service intervals. For a high performance engine that's not turbocharged, the results from this equation are probably conservative....
I know it seems like you're penalizing high performance engines twice by including both fuel efficiency and power density. However these types of engines - particularly turbos - do degrade the oil faster, even if you're just cruising on the highway @ 3000 rpms. There is always a fair amount of very hot exhaust gas flowing through the turbo and there is oil flowing through the very hot turbo bearings, where it is also being sheared at the same time.
I've had to shorten the service intervals in my 1.8L, 225 Hp Audi TT by about 30%-40% over what I used to be able to run in my 1.8L and 2.0L, 90-115 Hp Jettas w/ Amsoil, and they had smaller 4.0 qt sumps, vs 5.0 quarts in the TT. Mileage with the TT is only about 10%-15% less with mostly highway driving.
TS