LS swaps are not that cheap, you might be able to do it cheaper if you grab a car that came with an LS to swap all the stuff over. Then parting out that car. But still your going to be in the hole for all the other stuff that you’ll need.
fixing that l28 might be the cheapest of the options. Although that much for a head gasket is asking a lot, shops have to make money though.
If your inclined the DIY route will certainly save you a bunch of money, I think @siteunseen is at the ballpark, without getting into machining costs, $500 will get you pretty far with a l28.
the nice thing about that route is when it comes time for fix that l28et you’ll be more knowledgeable of what needs to be done on it.