If you HAVE to go diesel....12v 6bt from a 2007 ish ram 2500 would be a relatively easy swap. Youd need to upgrade the Holset HX35 and a few things like adjustable fuel plate, injectors, and add a good intercooler. All of that will give you like over 300 hp to the wheels and like over 400-500 ft lbs of torque. The problem is that there isnt really anywhere to put FMIC on a 60 large enough to go with the power that a higher powered diesel requires. the R2.8 is barely enough to power a firstgen 4runner, and you could buy 3 6bts for one R2.8. You are doing all of this work for re power... you want it to actually have power right? The nice thing about the ram cummins is that it will come with the NV4500 with the granny gear first gear and thats great for wheeling. Useless on the street. Expect about 25ish mpg city and 28 on the highway... but diesel costs more to fill up so its all kind of a wash. The main good thing about the 12v is you can just dump your old motor oil and stuff into the gas tank and it will run it
The reason toyota diesels arent done more here in the states is that parts and support is pretty limited as those motors were never sold here. Sure you can buy parts from places like cruiser outfitters or valley hybrids, and japan or australia... but if you are ever out on the road and have problems you wont be able to go to the parts store and buy parts to fix your s***. Every autozone and diesel supply shop will have parts for the 12v as well as LS motors.
Lots of people really like the idea of a diesel, until they actually drive one. For the longest time i wanted a diesel in my 60, but cant say i want it anymore.
5vz-FE would be okay in the 60 but youd really want a re gear and its still not going to give you that feeling of "wow i just doubled my power output"
If you want to keep it toyota, you could go with the UZ line of V8s but id stay away from anything that isnt a first generation 1uz
as its got significantly larger rods and is much stronger internally than all of the others. They take boost really well. Id stay far away from the 2uz as its the weakest of all the UZ motors. The UZ motor will be more expensive overall to swap over and will take up more room in your engine bay versus an LS. All upgrades will cost more too. Want to upgrade the cam to a kelford? gotta buy 4 instead of 1
Then theres the LS Swap. Its not the most original swap, but its the easiest to DIY by a large margin, there are parts literally at every parts store in the country for these, theres about a million types of variations of accessory drives and intakes you can go with for packaging. The aftermarket on them is just absurd. You can throw a cam, intake, valvesprings, pushrods, and some heads at it and make really good power NA or they take boost well also. The downside is youll only get about 12-13 mpg city and 14-15 mpg highway tops. Claims of 18-20 mpg on a LS is pure bull****. MPG aside, its also going to probably be the most reliable engine swap you can do. With the LS youll also get full obd2 monitoring of the vitals of your motor. Youll get that with the newer toyota motors but the support is better with the LS
A buddy of mine has a 12v in his 80 series and it makes just an absurd amount of torque but after driving it, i dont think i would like to go the diesel route in my 60. I like the more hp focused power delivery on the road of the LS. You can feel that the cummins has way more torque but it doesnt start making noticable horsepower until the turbo spools up. My 60 just goes and it goes fast. On the trail it has plenty of torque down low and ive not noticed it lacking at all, even with 2 wheels off the ground.
I think it all comes down to user serviceability.... are you okay with waiting a few weeks anytime your truck needs parts, or do you want to be able to just run down to the store real quick. I just drove my 60 from Tennessee to Oregon, with the cruise control set to 95 mph most of the way. Stopped in Moab to wheel for two days. Then completed the trip to Oregon. The only issue i had the entire time was my front brake line rubbing on my front driveshaft because it was too long. No chance in hell i would have made that trip without a domestic, super common motor. That would just be ill advised.