If I were dealing with unlimited dollars, I'd have someone build me a carbon fiber replica of an e30 with a 2 inch chop, 6-speed, and an ls6.
If I had 11K to spend, I'd probably have a decent rebuild, the DASC, 6speed, and spend the rest on the suspension. I'd probably still have something left over.

This is assuming the suspension is in good shape to begin with. If not, I'd start there before touching the engine.
While you are scheming though, I'd consider using one of the newer Eaton superchargers. They have a bypass system based on engine demand instead of the mechanical system the DASC uses. I haven't seen one but I suspect you could end up with a lighter setup as well, which would be nice since that weight is high up on the car.
If all you worry about is the money and not the end result (having a 4-cylinder monster) then of course it won't excite you.
Who would you rather be. the guy with another E36 M3, or the guy with a custom tuned M42 that would put a 95 M3 to shame?
I choose the latter
Jester