My logic for keeping it 318 Magnum is just less work overhead. Already having purchased a fully converted harness, bellhousing, ecm, and other parts. I just need a good magnum donor and mounts as well as a radiator solution.If I was starting with my Jeep now and doing a engine swap I'd be seriously looking at a Hemi over the Magnum V-8. But with owning a 1997 with a 01/96 build date I'd have to swap out the gauges & wiring from a newer TJ. It isn't a HUGE issue but it does make it a little more of a hassle compared to starting with a newer TJ.
When I started my swap back in 2005 a Hemi engine & trans take out was $10K if not more since they were basically a new engine which is what kept me from doing the Hemi swap back then. And as pc1p has talked about the 408 stroker he has it's a MONSTER for power but as has been noted before the Hemi or LS will get BETTER MPG than the Magnum.
For a newer JK, I would definitely consider the Hemi swap. I have the current 5.7 in the Durango and that thing is a beast, plus great mileage when traveling long distances on the road