I would stay away from the 5.3 block, unless you plan on getting it sleeved, although even in that situation I do not know if you could bore it out as far as the sleeved LS1 blocks. The 5.3 comes with a 3.779" bore, vs. 3.905" for the LS1, and 4.00" on the LS2's as well as the LQ4 iron truck motors. The small bore really hurts power potential, and even with a 4" crank in there you're only displacing 360 cubic inches, and your cylinder breathing is hurt tremendously by the valves being so shrouded. The cylinder heads on this block are fine, with a smaller chamber than the LS1's so they are a common upgrade to be ported and put on LS1 shortblocks to bump up the compression for a good N/A setup. That is a good price for the block, however, and if you plan to sleeve it to run a large bore it might be cheaper to buy this motor and have it sleeved rather than an LS1 or LS2 block.
For what it's worth, quickly throwing a 3.779" bore into my 4.125 x 4.000 LS1 motor setup that I have done up in Engine Analyzer results in a loss of 64 peak horsepower and 100 peak ft-lbs of torque, with the greatest losses being a whopping 165 ft-lbs of torque down at 3000 RPM's. If you arn't looking for
huge power the 5.3 might be for you, but I'm the kind of guy who feels 500 WHP in a 2400 pound package makes for an "ok" daily driver, so maybe I'm not the most sane