Thermodynamic efficiency vs. fuel economy
When you cite an efficiency of 25-30% for an internal combustion energy, you're talking about the thermodynamic efficiency of the engine. This is, at the theoretical level, based on a temperature differential. It has nothing directly to do with the fuel.
When you cite a fuel economy of 34 miles per gallon, you're now talking about something that depends a great deal on other factors—for example, the energy density of the fuel. How much extractable energy is there in a gallon of gasoline? How about a gallon of antimatter? A gallon of chocolate milk?
Many engines can accept different fuels, or fuel blends, with different energy densities, without a significant change in their thermodynamic efficiency. For example, ethanol is blended with gasoline, but has an energy density about 30% lower than gasoline; a gallon of one is not equal to a gallon of the other.
To operate an engine at a certain thermodynamic efficiency means having a temperature differential; to maintain that temperature differential, you need to add energy at some rate. Getting the same thermodynamic efficiency when your fuel has a lower energy density simply means increasing the fuel delivery rate ($Q$ or $\dot{m}$) so that the energy delivery rate ($q_{in}$) stays the same. This ignores the various nuances of how engines burn different fuels but, generally speaking, there is no direct relationship between the thermodynamic efficiency and the fuel economy.
Significance of engine loading
I feel like gearing must be part of the answer but I'm having a hard
time understanding just how the gearing allows the engine to generate
20 hp while clearly be at a higher efficiency than indicated on the
chart for low engine loading.
Maybe I'm not getting exactly what the engine loading is referring to?
When the car is not accelerating, engine loading comes from whatever forces are acting against the motion of the engine. Internal friction (pistons, crankshaft, transmission, etc.), external friction (tires on road surface), drag, gravity (when going uphill). "Load" means how much power is required of the engine for the car to have some speed and acceleration.
As you point out, when a vehicle is cruising on the highway, it only needs a small percentage of its total available power output to maintain speed. Unless we're talking really high speeds and/or an exceptionally gutless wonder of a car, cruising on the highway just isn't a high-loading situation. Your confusion seems to come from the fact that vehicles get better fuel economy when cruising at highway speeds than they do while accelerating.
The key thing to realize is that getting better fuel economy doesn't imply that the engine is operating at a higher thermodynamic efficiency because there are many other factors that go into fuel economy. The thermodynamic efficiency of the Carnot cycle is only one of those factors. Another factor is the efficiency of the combustion reaction (which is technically not part of the Carnot cycle). Another is how much power is being used to accelerate the vehicle (useful work) versus how much is being lost to friction, drag and conduction (waste heat, $q_{out}$).
Calculating fuel economy
Consider the following relationship—where does engine loading come in?
$$\text {fuel economy (mpg)} = \dfrac {\text {speed (mph)}} {\text {flow rate (gal/h)}} = \dfrac {v} {Q}$$
In an idealized situation, with no drag on the vehicle, minimal internal and external friction, driving on a horizontal plane, the power required to maintain any speed is effectively zero. This means the load on the engine (when not accelerating) is also effectively zero. The Carnot efficiency is irrelevant at this point, but it would be very low as well. However, the fuel economy would be enormous because you have some $v$ in the numerator with nearly zero $Q$ in the denominator.
The opposite situation is even easier to demonstrate; you can do it at home in your own car. Just floor the accelerator with the transmission in neutral. (Don't actually do this.) Instant high load scenario as you accelerate the hell out of that crankshaft but $v = 0$, so your fuel economy is zero.
Realistic scenarios are more complicated but the long story made short is that the combustion reaction that occurs in the cylinder of the engine is much less efficient during periods of very high acceleration (i.e., near max load). More fuel passes through the engine unburned, or only partly burned, meaning you didn't extract as much energy from the same gallon of fuel. You're still going somewhere and your engine is operating at a higher thermodynamic efficiency due to the load placed on it, but in terms of fuel economy, that benefit is reduced by the cost of lower combustion efficiency. It is even possible, when combustion efficiency is very poor, for that cost to outweigh the benefit of high loading entirely. (This might be expected if the vehicle has been very poorly maintained. In reality, so much depends on the age of the car, the quality of its control units, the gear in which you are accelerating, that it's hard to make an exact prediction for a general scenario.)
The other thing I want to mention is that you have to consider where your power is going. "High engine loading" just means that a lot of the power the engine is capable of producing is being demanded; it doesn't tell you where the power is going. If it's going to fight drag, which increases as the square of velocity, then that's wasted power and wasted fuel. You can deliver it very efficiently but if it's not adding to the speed* of the vehicle, it's not contributing to fuel economy. It only looks efficient when you draw your system boundary around the engine and ignore the purpose of the car.
* Technically, we should consider elevation as well, but fuel economy is typically calculated in terms of horizontal path distance. Gains and losses due to change in elevation are either assumed to cancel out overall or accounted for with some coarse correction factor.