a 12 valve cummins with the correct mods is 550hp and 1000-1200 foot pounds...easy and it will stilll get 10-12 MPG...it generally will only turn 3500 rpms or so though...better have a good selection of gears in a manual or a very built auto behind it...i think 6.72s would be waay too much gear for the cummins..IMHO
I love the 12v, but in stock form it doesn't rev very fast or very high. And if you turn it way up, then you have to put a bunch of money into the transmission to get it to handle all of the added torque.
I say go with the big block. I've kind of debated between an AMC 401 and Cummins 4BT in my CJ8. While I would love the fuel economy of the Cummins, I think the 401 would be WAAAAYYYYY more fun. And for how much I really drive it, fuel economy isn't that much of a concern anyhow.
700 bucks for injectors.. 1800 bucks in pump work.. 4 grand worth of twins.. 5k+ RPM... 7-800+ easy and 1400+ ft lbs.. So I guess if you can build a BB to do the same for less. You'd probably have less gauges to watch.