The issue, it would seem, is not DMUs but large engines in a UK gauge locomotive body. But I suspect even that is solvable at a price - 23m loco with multiple, smaller engines?
Neil
Off the shelf IIIB Cummins QSK19-R. The 185s and 22x use an older version of it, so shouldn't be a problem fitting that into a new build UK-gauge DMU. It's available in horizontal config as the old ones were. It's high power for a DMU, at 750bhp, so either a de-rated version, or unpowered trailers, or not all cars running all of the time for applications where that's too much power if all cars are powered.
Perkins don't appear to actively advertise a current horizontal version of the 6.354/2006 previously used in DMUs, but they do have IIIB engines, so there's at least some possibility that they could produce something for a DMU if one of the manufacturers showed some interest. Fundamentally, they have 300bhp 6pot IIIB industrial engines (1206), and past experience of converting their engines to horizontal use.
For locos, I really think it's only a question of a builder showing willingness to place a suitably large order with one of the engine manufacturers. Multiple smaller engines could work quite well, but is there any fundamental reason why they can't apply their existing IIIB knowledge and skills to their existing larger engine designs? Sure, UK gauge is tight, but we've managed to build locos around some pretty huge engines in the past, and I find it very hard to believe that the latest emissions regs actually make it impossible if the demand is there.