Math looks right to me. Corliss rotary valves are very hard to make fit with no leaks, so that may be where a lot is going - I know mine leaked around the valves. Its amazing how much volume a seamingly small leak can let escape, but I have no data on how that would calculate out. Also may be leakage around the piston? One thing to try would be to hold the flywheel at different points in the stroke so it cannot rotate, and listen to hear how much hissing there is and where.
And compressors not making rated numbers? No surprise there! For that type of compressor, I would not be surprised if the rated volume is at a very low pressure, not while maintaining the 40+ psi. I used to work in consumer products, and saw how many games companies played with rating numbers - often many paragraphs of fine print.
If its able to run that large and engine at 25 rpm, I'd call it a win. Any type of portable small compressor I've seen struggles to run anything more than a small oscillator engine.