Very true, but the "flaws" in the malaise big-blocks were symptoms of the restrictions of the times rather than inherent flaws in the engines themselves. Not only were they having to meet increasingly strict emission regulations, but the 1974 fuel crisis and a jump in gas prices put a sudden and unexpected emphasis on fuel economy. Despite their lack of power in showroom-stock form, these big V8s were still torquey, incredibly sturdy and reliable, and can be tuned for much more power without a whole lot of work. In the 1970s, engines from all manufacturers - domestic and foreign - suffered under the weight of US regulations. European and Japanese engines were producing far less power in US trim than in home-market configurations. It took the widespread adoption of EFI in the 1980s for performance to really return in cars.
A lot of people are whining about the low horsepower numbers of the malaise big-block V8s. What they're forgetting is that horsepower is a function of torque and revs, and these V8s typically weren't much for revving despite having tons of low-end grunt. These Malaise cars had plenty of kick off the line but ran out of breath pretty quickly as the revs climbed, and that's the fault of period emission controls, primitive fuel and ignition systems dealing with unleaded gas, and econo tuning. It doesn't take much to de-smog these engines and get some pretty serious power and performance out of them.
Merkur was a failure in that it didn't sell anywhere near the volumes that Ford had hoped for. The name "Merkur" didn't exactly off Anglophone tongues - no-one was sure how to pronounce it. Also, Lincoln-Mercury dealers seemed the wrong place to find a BMW fighters and the dealers themselves were non too enthusiastic about the cars after the initial interest faded. Ford did try to develop the brand with the introduction of the 1988 Scorpio, but despite being a nice car, it was pretty much a non-starter.
Of course, this is an old Italian exotic with all that implies, right?. Have this Merak checked out by an expert. If it gets a clean bill of health, then we have a Nice Price here, though not a bargain.