6 cyl 4.0L Jeep engine is more than adequate for the YJ Wrangler, especially offroad; IMO there is no need for installing a V8 or any other engine. The expense of swapping your 4.0L for a different engine is difficult to justify. It's difficult to beat the original 4.0L engine that evolved during the late 80's and early 90's. Economically, it would be best to repair the existing engine, if possible. If it isn't possible, I'd recommend replacing the engine with another 4.0L Jeep engine.

So, what's wrong with the "blown" engine, specifically? Can it be easily repaired?

94 YJ, SOA, 2-1/2 Alcans, ARB-front, Detroit-Rear, 4.56:1 gears, Oasis Trailhead compressor, 4:1 Terra Lo, 37x12.50x15 SSR's, 8000 lb Ramsey, & etc.