Doing a really mean engine model like Euro did is not really possible in real time. I wrote a couple of engine simulations like he described, one of which is a two stroke model for the next Virtual RC Racing. While that one can run in just a couple of seconds, my latest four stroke model takes about five minutes to generate a complete torque curve at only one throttle setting. It does something like ten to sixteen engine revolutions per rpm point, and I was using maybe twelve to fifteen points. So it essentially took five minutes for the engine to spin around 120-200 times or so. Pretty far off from real time obviously.
The old engine audio samples I did a couple years ago is actually a very simple engine simulation running in real time though. All eight cylinders are modelled, but it's too simplistic to generate anything useful other than audio.
In short, look up tables are just fine provided you can preprocess all that stuff during development if it's something that can take a long time, like engine simulation. The answer you get for "how much torque is there right now" is the same either way. You just have to make sure there are enough data points. Filling thousands of cells wouldn't be done manually, but rather by the simulation. There's just not a simple little formula that will model an engine remotely accurately, so a much more involved approach is needed and with today's CPU power, look up tables are a must.