I know this is just daydream talk, I wish I had done this instead of spending so much money on the manual S8.
If I had the space and the money I still would want to do this.
D2 body - to me a perfect chassis, just needs more power, more reliable transmission

This would be perfect. Only sacrifice is to lose 4WD, but the gains in performance and weight reduction, wow I would love to see such a beast.
http://www.jegs.com/i/Chevrolet+Perf...L65E2/10002/-1
*shame its only a 4L65E in that package, they should really put in a 6L80E instead
**LS3 can be successfully mated with a 01E, but that's a much bigger project than just making some custom engine & trans mounts, shortening driveshaft and some wiring fiddling.