exD does say it well, and with a greater understanding than I have. It goes without saying that I was once highly impressed with very large HP/L numbers, but when taken into consideration with actual motor size and weight, along with fuel economy and reliablity, it's kind of a meaningless metric in and of itself.
A great example is perhaps this :
2008 Honda S2000. F22C 2.2L (actually about 2.15L), 237HP, 162TQ, 18/25 Fuel Economy.
2008 Chevy Vette. LS3 6.2L, 438HP, 428TQ, 16/26 Fuel Economy.
It's worth noting that for both the S2000 and the Vette, the actual motor size and weight are very similar, the vehicle weight is similar, and both seem to do better than mfg ratings for actual highway fuel economy (EPA rules are insane about testing "highway" fuel economy, the tests include lots of deceleration/acceleration that more closely resemble driving on a highway through a partially congested metropolis than open interstate).
So, the S2000 beats the Vette on "HP/L", but most definitely loses in terms of how much HP/lb or HP/physical size of motor is achieved. And that's fair enough, the S2000 was never really a Vette rival, Honda probably could have put something out in the 400+Hp range for $50k+ if they had truly chased that goal, but the S2K was a mid $30s car.