Lawn mower engines use significantly less gas than they did 15-20 years ago. My Honda GX610 18 HP V twin uses about half the amount of gas as the original 25 year old 17 HP Kohler KT17 did in the same tractor, and along with 1 additional HP the Honda produces about 5 more ft/lbs of torque than the Kohler did. Innovations in the mower engines mainly came from the automotive sector, including use of overhead valves, aluminum blocks and heads, hydraulic valve lifters, efficient head porting, shorter and cleaner intake runners, higher compression ratios, higher spark voltage on the ignition, better valve and ignition timing, less restrictive exhausts, etc.
I would say around 1 gal/hr on a 18-20 HP modern small engine sounds about right.
New innovations we are seeing on mowers are fuel injection and some rebirth with overhead cams and liquid cooling, although most mower owners don't like the extra maintenance expenses associated with these items. I expect to see air cooling and carburetors to be around on mower engines for a long time to come.
-Fordlords-