I don't know, part of what makes Toyotas act like Toyotas on the trail is smaller power plants and awesome gearing. I have literally spanked DOZENS of guys on the trail with V8 swaps in their Jeeps and Toyotas. This is especially true in the deep snow for whatever reason I don't know, you would think bigger power would be better there, but it just doesn't work out in reality. In all other trail conditions a nice V8 just breaks stuff unless you run 1 ton axles and huge drivetrain parts, which kind of defeates the purpose of running a Toyota anyway...
I even had a V8 swaped 1980 Toyota for a while. Now I have the same year and model with the 20r and it waxes all over the V8 truck as far as wheeling goes. On the highway and the street the V8 Toyota was super fun. You could smoke ricers all day long around town.
If you want to focus on mud racing only and the street a V8 would probably be fun but from what I've seen and experienced the 4 banger is the wat to go for extreme wheeling.
Ultimately it's your build though so if you want big power, tear it up!