Light and small is better than heavy and powerful.
I have a "Webered" 1.6 8-valve in my Samurai. With the proper gearing (4.625s, stock t-case, 30" BFG ATs), it drives great in almost every situation. No "rowing", no bogging down in daily driving. It's not a "super-crawler", but it does what I want off road.
The 16-valve would get you better performance and mileage, but it takes more effort from an electrical standpoint to get it running.
I hope that this helps!