Sorry to hear about your block!
The only way I would do a metal stitch repair would be on a rare irreplaceable motor. The small block Chevy is the exact opposite of that. You can pick up a machined block from any number of places for less than the cost you quoted for the stitch job, and it wouldn't be a well-used marine block.
Personally, I would find a local machinist and come up with a recipe for a mild 383 since you're doing a complete build. Or find a 383 crate engine from a reputable manufacturer. Sticking with 350 cubes at this point would essentially be giving up free horsepower.
All can be done on a realistic budget from $5k to whatever you want to spend - the sky is the limit! I would do some searching here and other places to find some reliable small block recipes; there are a ton of them floating around.
"Speed's fine, but accuracy is final."
- Bill Jordan
1998 Donzi 21LXR
1971 Boston Whaler 13