On a 737 those engines cannot be placed in an ideal position, because that would mean they'd clip into the ground.
The engines are being put above and I think in front of (might be wrong there) where they should be for maximal flight stability.
The original 737 was self-correcting - meaning that if for example the aircraft stalled, the resulting forces would cause the nose to dip down, pulling the plane out of the stall automatically.
The newer versions no longer have that inherent self-correcting ability - and instead use computer software to take over controls and pull the nose down, in case of a stall.
A new airplane design could be made to accommodate much larger, modern engines, while also having the stability and inherent self-correcting ability of the original 737.
But that would require changes to the overall shape and form of the plane - which will require complete recertification. By sticking to the old design, they avoid that.