I always liked the idea of a wet-sleeved engine, due to an unlimited number of times the block can be overhauled. Cost is one problem, but wet sleeved blocks are also not as strong because the cylinders themselves don't add to the overall rigidity of the combined structure. Heavy commercial engines use them but they typically have to be made more massive, so they don't have very good power to weight ratio.
If adding this to an existing engine, I suspect there would be need to have smaller diameter pistons, depending on how much of the original bore gets removed (if any) to make room for the sleeves. It's still a neat idea though. Even our old 1948 Ferguson tractor uses a wet-sleeved engine. The block is basically just a cast iron box with a single cross webbing in the middle (which cracked some time in the last century. Still runs fine).