The biggest improvement is not the engine: high compression, OHC, multi-valve engines have been around for 100years although they were state of the art, expensive to make and own. Modern machining and metallurgy have made them commonplace.
The real improvement is from engine management. No matter how good even multi-choke carbs are setup, they're still a compromise. Distributor ignitions are even worse; we talk about the timing curve, but even with vacuum advance it is more a matter of a stepped line.
Putting the fuel and spark under purely electronic control means you can give the engine exactly the fuel and spark it needs at exactly the right time. This leads to more power, lower emissions, better fuel economy and improved durability all at the same time. Engine management allows you to do things like cut the fuel with the throttle closed which is where a lot of the economy inprovement comes from. Proof of this easy, just look at engines that were produced with both carbs and management. Ford's Pinto is a good example; a 2.0l with a 32/36DGAV carb is reasonably powerful and will easily give 30mpg in a sensible road car. But take one apart at 100k miles and you'll find bore wear and other damage that you really don't want to see. The EFI Pinto(I've had and worked on several) will give 35mpg in the same car, makes about 15hp more, and will still have the honing marks in the bores at nearly 200k miles.
Unfortunately, we soon hit diminishing returns, and it doesn't take long for the complexity to increase(things like driver by wire, or EGR valves, poorly mounted ECUs) and move to the other side of the curve.