> There's been alternative engine development for almost as long as there's been the combustion engine, and nothing yet has made an impact.
That's not actually true. There have been an enormous variety of "impacts" from alternative engine designs. It's just that the engines that made the biggest "impacts" aren't "alternative" any more.
External-combustion engine: prior to 70 AD (aeolipile).
Internal-combustion rocket engine: 1200s.
Steam turbine (impact-turbine steam-jack): Taqi al-Din, 1600s.
Piston-vacuum steam engine: Newcomen, 1712.
Separate-condenser vacuum steam engine: Watt, 1765.
High-pressure steam engine: early 1800s, although maybe we should assign the credit to Hornblower, 1785.
Stirling engine: Stirling, 1816.
Otto engine: Otto, 1861 (or maybe some Italians in the 1850s.)
Two-stroke engine: Clerk, 1881.
Atkinson-cycle engine: Atkinson, 1882.
Rotary engine: Millet, 1889.
Diesel engine: Diesel, 1892.
Progressive-expansion turbine: Parsons, 1897.
Four-stroke diesel engine: Diesel, 1897.
Combustion-gas turbine: Elling, 1903.
Pulsejet (used in buzz-bombs): Karavodin, 1907.
Monosoupape, used in the Sopwith Camel: 1913.
Liquid-fueled rocket: Goddard, 1926.
Turbojet: Whittle and von Ohain, 1930s.
Ramjet: Leduc, 1936.
Turbofan: 1943.
Wankel engine: Wankel, 1954.
I've omitted minor changes like turbochargers, nozzle shapes, fuel injection, continuous-jerk camshafts, and so on; even though they're very practically important, I don't think they represent "alternative combustion engines". I've also omitted designs that haven't seen widespread use.
Now, from this, it looks like nothing has happened for 50 years. That is an illusion. The Atkinson engine only became significant in the last decade or two; Wankel's device only became significant in the 1970s; the ramjet didn't become significant until the 1950s; steam turbines went from a curiosity in the 1600s to the prime mover for much of the world's economy today, but it wasn't until Parsons' redesign that they really mattered.
Over the last 50 years, many new heat engine designs have been created: nutating-disc engines, thermoacoustic engines, the quasiturbine, scramjets, Stelzer's engine, the fluidyne engine, Sarich's orbital engine, the IRIS engine, and now this "wave disc generator". It's too early to tell which, if any, of these will turn out to be useful in the long run — at least as useful as the Wankel engine was in Mazda’s cars.