The coils/leafs situation was a compromise. The owner wanted to do an FJ80 chassis, but there are too may pitfalls with that conversion. Leaf springs in the rear just make sense for a "truck" with their parallel control arm geometry, but the radius arm front suspension does give a measurable amount of advantages, both on and off road.
A Toyota V8 just doesn't make sense. Dollar for dollar, pound for pound, a Toyota V8 doesn't stack up against the LS platform. If labor were free, you might have an argument, but then you'd have the myriad electronic and emissions hoops to jump through, and ultimately have less on tap than an LS. Other than seeing Toyota valve covers, the benefits do not outweigh the penalties. As for the R2.8 argument, this is not the vehicle for that. It really is all about the numbers here. While the R2.8 make impressive torque numbers, I don't feel that it is the right engine for this type of vehicle. In a much lighter vehicle, absolutely, but not an FJ60/62.
Thanks for your interest. I hope this build thread meets or even surpasses your standards.