Blaming the government or emissions laws feels good but it is just plain false as the real answer is that offering less trim and powertrain options makes more money due to economies of scale. A lot of powertrain options went away because it's very expensive to design, continuously update and manufacture a bunch of engines rather than just a couple or even one. Back in the 70's GM had Chevrolet, Pontiac, Buick, Oldsmobile, and Cadillac designed V8's that while in many cases were near identical but really were all separate and distinct and required a ton of resources just to stay up to date with changing technology. Engines get revised, updated all the time and GM decided it was a waste of money to maintain all these separate engine lines and just made the SBC the corporate small block V8 and dropped all the rest. Today all the OEM's operate like this, Honda for instance makes the J series V6 as the only engine they offer with more than 4 cylinders.
The reason you can't pick out whatever bolt in powertrain that is currently offered on a different vehicle is absolutely due to regulation. Not saying it's good or bad, but I couldn't go order say a Bronco with a 5.0 even if Ford had the stuff in the parts bin to do it. Before emissions regulations, if you had the money the manufacturers wouldn't necessarily ignore those kinds of requests. Hennessey plans to build 24 5.0 Broncos to the tune of $225K each, so it is doable, but Ford isn't going to do it for you.
Economies of scale is a reason why factory customization in general is rare, but there is also a specific reason why powertrain customization went away decades before that.