I don't think 130 hp out of a Type I should be a problem, if it is well / properly built. If you are going to drive it on the street in a moderate fashion it should last a long time....it won't last as long as a properly built Type IV of the same HP but either is a crap shoot ultimately as to when it may break....
Some things that can and should be done for a type I street engine of 130 hp would include a very good balancing job, I would recommend nitrated counterweighted crank, and "H" rods or something similar aftermarket rods. Also, full flow oil filtering is an absolute requirement in my thinking, as is a rev limiter. Also, if you plan to run it up to red line everytime before you shift....then it will not live nearly so long as something driven more conservatively....I or IV.
Regarding Type I versus Type IV, I like to look at a simple formula or 2, the first being $/HP and the second being miles an engine will last/$. Generally a Type IV will cost 2x what a Type I will cost HP to HP. However, there is a very good likelihood the type IV will last 2-4 times as many miles at the same HP as the Type I. Hence, for a long term engine, the Type IV makes better sense, even though it costs 2 x, it may live 4x as long.....another issue is there are not many people out and about (Jake is an absolute exception) who understands how to build a Type IV that will live and make very serious HP. There are others but there are many more who build a good Type I.....just my thoughts....