My understanding of it is that thin-wall casting technology hadn't come very far in the late 60's, so the engine blocks were cast in the foundry with more metal, resulting in thicker webbing and cylinder walls, etc. The blocks were heavy and cost more to produce, but could withstand a few more horsepower before they split in half. Same goes for 60's era 351W blocks.
As technology evolved into the 70s and 80s, metal casting technology got better and we were able to produce blocks with similar longevity and reliability (cooling efficiency, bore wear, etc) with less material, resulting in reduced production costs and lighter block weight. Consider the poor performance from the cars of the 70's too, where 300 HP was considered insane.
Fast forward to the late 90s, where computer aided design (CAD) and finite element analysis (FEA) has enabled us to make superior castings at similar costs, getting us the best of both worlds in terms of weight, production costs, and actual block strength. The Mod motor block is a perfect example, with some of these factory castings surviving into 1000+ HP range (with the proper forged internals). GM's LS series engines are also a good example.
On a similar note, its also my understanding that any claim that the recent "Mexican" truck 302 blocks are any stronger is bogus. They weigh a few pounds more than similar "American" cast 302 blocks, but the added material is NOT in structural areas in the block. They may be made from a slightly different alloy, but I don't know anything about that.
Sorry about the novel, nothing to do here at work and I just finished my second cup of coffee.