Hi Dan,
I get it! I am still toying (pun) with the idea of a 350. Someone in another post pointed out the advantages, namely wide availability of parts and repairability). However, I don't have the chops to do a swap with the welding and fab needed for the the 350 though. I also don't have a 350 block. I can't imagine I'd get a 350 in there for less than $5K. Douglas said his last 78 2F rebuild was about $3500 and I would still want EFI, RV Cam, 9:1 or better compression, etc.
Add to the financial and technical roadblocks the fact that I am not keen to un-Toyota my Toyota. I am a bit of a purest in that sense. I believe the thing that makes the Fj40 (and other TLCs) great is the engineering (as reverse engineered as much of it is!) Toyota put behind it. IF I ever do a swap, it will probably remain Toyota... Like a 1HD-FT, auto trans and t-case from an Aussie 80... The only other thing I might consider doing, if I were to go off the Toyota res would be a Cummins R28 and gut all the innards for aftermarket stuff... six speed auto, axle assemblies, Atlas, 3 and 4 link suspension, etc.
I know that all of this is in the eye of the beholder... Some would say that I will lose the Toyota purity with new wheels, bigger tires, lockers, and other aftermarkets. So I say to each his own!