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I suppose it makes no financial sense and in many ways...just buy an A500. Guess that's not the point though with a project like this and the Panda had a number of positives, better steering, 5 doors, arguably better looking.
I've been told I'd need the Abarth engine, turbo and gearbox, driveshafts, subframe, entire front suspension and a few other bits and pieces. A custom intercooler/pipework, and a standalone ECU, wiring and mapping to run it all. Exhaust, suspension, probably clutch and gearbox. Quite a list!
Why do people think it is a bad idea? Twice the power and pretty easy to transplant as panda/500 are the same floor pan and engine mounts. People fit the 1.4 16v out of the punto, in to the panda as it is cheaper and easier to source than the 100hp engine
If it were me, I buy a decent panda mainly for the shell. Engine, gearbox and suspension brakes and wheels don't matter as you will be upgrading them. So the costs and hassle of selling the 100hp ones compared to selling 1.1 or 1.2 engine. I do go for the later 500/ka rear suspension beam as it is stronger and has an anti roll bar I have been told which the panda not even the 100hp has. Convert the rear to disc brakes? EDIT the ka/500 beam is also wider but not a issue.
Don't pay a premium for the abarth brakes as they are the same as other larger fiats or the dublo van I think. But there are the upgrades from other fiats, also should be a straigh forward swap as it has been done and documented. Not as if you are putting an Audi R8 engine in to a MK1 MR2!