I love it. I'm not sure what's required to make 160 HP safe for these, but I do think there's guys running like 190/200+HP in semi-streetable setups. I would definitely do head studs and anything else before I went through the trouble of bigger turbo and injectors.
Some setups with bigger vehicles can benefit from more hp or gearing so the skinny pedal doesn't get too worn out, but I've never been big into modifying diesels personally, since I'm more interested in torque and most diesels have quite a bit of torque available. However with a fair amount of tools and gear, a TJ with around 300 ft/lbs is ideal, but even 240ish ft/lbs down low, with a bit more gearing would be totally acceptable as well. Honestly over 300 ft/lbs and I'm starting to worry about breaking stuff, so then you've got to think about a transmission and mating t-cases, length of driveline, etc and that gets expensive, though it's still cool.
What's the max safe RPM for the ALH?
A guy I work with has several of the TDIs from the generation before the ALH and he's got a van swap coming up and then he's going with a Toyota truck build when he can get to it. I am definitely torn on my next swap I want to do. There's about 4 engines I'm really interested in. This time around though I'm not going to be constrained by time like I was with my R2.8 Swap and that's a MAJOR reason I did that swap, because of the specs of the engine and the availability of kits with new good parts. The TDI was high on that list, but the way I needed to do it, the cost was only a bit cheaper, by the time I found the engine, had it built and bought a kit, I was in the same $$$$ window as the crate engine with Axis kit. At that point a couple grand wasn't a significant hit, compared to the slight advantage I saw to the R2.8 specs of a brand new engine vs TDI.
If you've got the time the TDI and Kubota, look like really really good swap engines:
TDI Pros (vs Kubota):
AVAILABILITY, Swap advice and history, support, price (probably)
Kubota Pros (vs TDI)
Geared timing, mechanical injection (could be considered a negative, but not so much for a swap IMO), displacement, unique (this is certainly a pro and a con, but if and when it works it's a major pro)
I love all the swaps though, but I really think the diesel swaps fit the needs for most Jeeps the best and each have their own advantages and disadvantages that it's just a preference thing for the most part, since we don't get a say with how the TJ should have been equipped.