Sorry I'm late to the game. An LS swap is sweet. A whole lot of fun with lots of smiles per gallon. When I first did mine, I ran my AX15 behind my 5.3. It ripped and I consistently averaged 18-20 mpg with 4.56s and 35s. When I went to 37s, 60s but still with 4.56s, it would do 16-18 mpg usually. I "justified" my swap by saying it would pay for itself in fuel. Turns out you can justify anything to yourself. It was total crap though. I've never run enough fuel through my Jeep to pay for that. I did it "cheap" by doing everything I could for myself and doing a bunch of horsetrading and part flipping. I ended up dropping just shy of $7k. The motor was only $850 of that. The motor is the cheap part. The exhaust, electrical and 9000 other parts you need to buy that add up and nickel and dime you to death.
When I cut my Jeep up and stretched it and such, I also swapped in an automagic trans in the form of a 4L80 and also a Hero transfer case. I did commute it to work quite a bit from Sandy to Lehi, and it only averaged about 13 mpg. I blame that on the 4L80 being such a power sink (rumor has it 40hp alone is required to run the pump) and a gear driven t-case will never be as efficient at transferring power as a 231 or 241. Fact of life. Interestingly enough, turning 40s didn't hurt fuel economy at all....
Lots of good points in here though. And there is a lot to be said for keeping a Jeep "stock". Makes it easier to find parts. And if you do an LS swap, it is an emissions nightmare. Possible. But it is a nightmare.
With an iron block LS, all of the accessories is right about 100 lbs lighter than the 4.0L with accessories. LS swaps vary in cost depending on how you get the engine/trans and what shape they are in. I know a couple of people who bought complete vehicles, stole the engine, trans, computer, etc., then parted the vehicle out and got all of their money back that they invested in the donor - they actually made money getting the engine & trans they wanted. The LS swap is definitely more work as well.
I've been busting this myth every chance I get. The internet is full of lies. Haha I had heard this and been preached to while I was researching the swap, in fact I think it is even on Novak's website. But a fully dressed iron block LS and a fully dressed 4.0 to not tip the scales like people think. The 4.0 is about 130# lighter than a 5.3. I think you might be almost an even swap pound for pound with an aluminum block LS. But even that is probably slightly heavier than a 4.0. I used to believe this, but had the opportunity to put each engine on a pallet scale. My jaw hit the floor with the results.