Allow me to throw my two cents in here. By retaining the original engine you keep an important aspect of your vette in tact. You can go crate but you miss an opportunity to do some very neat things to your original engine that you could also do to the crate but would increase the cost of the crate engine.
You could have the the pistons knurled, engine balanced, crank micro polished and cross drilled, heads redone to maximize flow and exhaust, high volume oil pump and some mild cam work. You would be amazed what balancing and blueprinting does to your HP. If your car is not stock then it doesn't matter, if it is, I would keep the original engine. Do not just do the heads, with 118K on the block you will end up burning oil (if you don't now). Unless of course Mobil 1 was always used in the engine.