5.3 iron blocks engines are REALLY inexpensive. Like I see them quite a bit for 500 bucks. Sure, it might have 180-200 thousand miles on it, but for low buck, its REALLY tough to beat that.
The prices have come down where you're at then but out here in WA they are still $1500+. Granted you can't buy a used Durango or Ram or Dakota or GC for under $1K anymore either but wiring wise IMO the magnum for a cheap V-8 is still the better option. But if your goal is to make 400+ HP then yes a LS or Hemi is the way to go.