An O-360 is a direct drive engine, the propeller is attached directly to the crankshaft. And that's the case for most light aircraft piston engines. Some (especially more modern ones) have a single speed reduction gearbox.

The only thing an aircraft piston engine does is turn a propeller through the air, and that absorbs nearly 100% of the power produced by the engine. Swinging an 80 inch diameter propeller at 2700 RPM will use a lot of power and required a lot of torque.

You raise variable pitch propellers or constant speed propellers. These are used on some piston engine aircraft (the rest use a simple fixed-pitch propeller) and all turboprop aircraft. They do vary the pitch of the blades to find the most efficient angle both in climb and at higher speeds, due to the mechanics of how a propeller works. But this doesn't really affect the fact that a ton of torque is required to turn the propeller.