They built those M40 prototypes in the 70’s. The mustangs at that point were being converted into coin operation aircraft.
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I remember reading that many companies even today look at the P-51 airframe and go would it be cool if we take a WW2 aircraft pop a turbo prop in her and have it blast buildings with .50 cals, cannons, bombs, and ATGMs? Think about it pentagon it will be like the old times!
Then they go bankrupt. Funny enough the sales pamphlets for these things lean a lot on nostalgia.
Some one should try the concept again but with P-47 airframe just because.
The A-29 Super Tucano is probably the best current day iteration of the P-51. The U.S Air Force still retains a fleet of them after the special forces had ordered them.
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A-29 Super Tucano is a cool plane but she has no connection to the P-51 besides it looks kind of like one.
P-51 though is likely one of the best designed prop aircraft out there also the design and airframe was designed though its life time to be robust and easy to make which is ideal for COIN aircraft. You don’t want a death by a 1000 AK-47 rounds. P-51 could eat a few cannon rounds flak shrapnel here and there it can likely take a hit from a AK-47. So it makes sense to modify a proven design into a COIN aircraft instead of inventing a whole new airframe. (you also need to test that airframe not cheap and takes lots of time) P-51 is approved design.
Why did it fail? Because we could make better COIN aircraft.
The P-51 would need to ditch the merlin though to be of use today. Mainly because we don’t mass produce leaded high octane fuels anymore, but also because there is much more reliable powerplants out there. The A-29 afterall is built to withstand manpad missiles, and has a kevlar armored cockpit for the pilot.
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That was one of the issues with these projects change the engine change the airframe need more testing.