In FIA WEC, the manufacturers have a more open choice of engine and hybrid system which easily disproves that no OEM would want to build a V8 turbo because given an open choice (including an F1 style engine if they wanted), BMW built a gas guzzling turbo V8:
en.wikipedia.org
So did Porsche who previously ran a more F1 style engine in their older hybrid prototype era:
en.wikipedia.org
Hyundai went with a turbo V8 as well and there's a spread of bigger turbo V6's but despite the choice of a small F1 style engine, no manufacturer chose that. Cadillac went with a straight V8 and Aston Martin who were clearly concerned about the optics went for a 6.5 litre V12. The optics are the exact opposite of what you claim, while the F1 engines have long been criticised by fans and the new engines even more so the Cadillac V8 in particular has been a fan favourite (there's compilations of the car leaving pits under electrical power following by the massive roar as the V8 is fired up) and the Aston V12 has also been met with enthusiasm.
The further problem with the optics of the current F1 engines is that it makes the electric part and efficiency look completely laughable - all this talk about recovery and problems getting energy takes away from the actual racing and doesn't promote the hybrids as something desirable at all. They could used to the electric element to improve the cars which in turn makes it look more desirable whereas instead they've just made the whole concept look bad. I don't buy the argument that they can't have a front recovery system because it allows back door traction control, other racing series have implemented such a system and had much closer racing than F1 plus there's other high profile sports that have explicit traction control (MotoGP bikes have traction control and other aids like an anti-wheelie system) without the issues Hughes claims.
No-one wants to buy a Mercedes car because they have a great F1 hybrid engine nor do people want that type of engine either. Mercedes made the controversial choice to replace their 3.8 litre twin turbo V8 in the C63 with a two litre four cylinder engine hybrid instead and it's been a complete sales disaster forcing Mercedes to abandon the idea completely to return to bigger engines.