If you have a complete LS it definitely is. I think even if you got just the motor and accessories, and then had to buy the wiring, ecu and smattering of other stuff seperately it probably still is more cost effective to stick with the factory parts....
I started working on a budget spreadsheet, knowing that if I really wanted to pay the money I could just slap a carb on it and hook up a few wires and be done but I'd be sacrificing the economy of the build, plus when I really started looking at the numbers, the carb option just still looked more expensive on paper. I think if was able to score a good lower mile stock 5.3 for a few hundred dollars then yeah but I got a low low mile unit and paid more.
Speaking of which, for now, I am not planning on going inside the motor but I noticed that there is some gray goop around the oil pan, so I was curious, can the oil pan and gasket be changed OK once in a K5 or should I just go ahead and do it out of the truck, and whatever I end up needing to do, are there any other gaskets that have to be changed along with the oil pan gasket?