I can relate, except that if I did the same thing I'd have $3500 in the engine, factoring in what I paid for the used "running" engine that lasted all of about an hour's run time.
Anyone who knows me knows I am a purist when it comes to a KF. I like them stock, or as our club judges say, how the car came from the factory. But, I am seriously considering deviating from that and dropping in a small block Chevy and modern transmission. I've had four engines in my 54 and I do not have the appetite for a fifth Kaiser engine and the unknowns it brings.
Ours are not easy decisions!