Yes, the single-stage centrifugal supercharger was the Allison's biggest drawback, but it was the USAAF that demanded it be that configuration- they believed that turbo-supercharging using exhaust would provide better results, and they intended it to always be a low-altitude engine.
Of course, when the Brits got the first P-51s they stuck Merlins in them... the performance difference was astounding, and RR licensed Packard to make Merlins here, and the P-51D was born.
But the -7 and -9 Packard Merlin's 2-stage, 2-speed blowers and the resultant complexity were also their weakest point. They ran higher HP and altitude, but at a cost of reliability. Not a huge issue when the life expectancy of an engine was under 100 hours. But the Merlin adapted to boat racing after the war just like the Allison- just that the Merlin took a lot more money and skill to keep running, and they tended to come apart much easier. So basically the big-money guys ran the more powerful Merlin, and the little guys ran the Allison, until the boats started using turbines (T-55 Lycomings) in the 1980s. Also military surplus.
GM-Allison did attempt to design a 2-stage V1710, and the Aux stage V1710-G6 -143/145 was the end result. Unfortunately it was horribly unreliable due to the added complexity. The end of the war, coinciding with the beginning of the Jet age, ended all factory development of the big aero piston engines.