My ignition IS an HEI... using the OEM distributor. Which I'm going to modify for more mechanical advance, its currently limited to 13 degrees I'm going to either flip the head or modify it to about 18 degrees. My ignition has been upgraded to its limit. It's not pretty but it works even on mostly 25 yr old wiring. I did however lose the timing retard function for the starting circuit by going HEI. But I still have my Duraspark module mounted and can plug it in and use it at any time should my HEI fail. I also have the stock coil and a Ford Mustang E-core coil under the hood and can switch between the two ignitions with 3 wires.
The next step would be an MSD box.
Bigger carb (small jets) and better ignition are already done, and I'll keep my exhaust (might even leave the cat in place, for 25 yrs old it still passes emissions), the head swap would really set this engine off... but a slightly larger camshaft to use that increased airflow would REALLY be the cat's ass.
I agree that a V8 would kill my handling. It handles pretty good for such a SWB as is. With better springs and a wider power band it would really shine.
You have to ask yourself, Do I wanna go on trail rides and crawl over rocks and splash through mud, or do I wanna drive down the street pounding pavement, and smoke some 16yo kid driving his mommys car at a stoplight.
I can (have done) and will do both with my Jeep. I don't see ANY reason I should have to compromise ANY one area to such an extreme that a SOA 3/4 or 1-ton axle Turbo L6 or mild V8 ~100" WB YJ couldn't go down the drag strip at over 100mph, go wheeling and go on a roadtrip in the same swoop.
Give me time gents, it can be done.
You're right though... y'all seem more interested in getting in and out of the woods than getting better power and fuel economy from a 25yo 180k mile piece of vintage technology.
Thank you to the ppl who contributed and encouraged throughout this thread.