There is nothing wrong with lsvtec motors the only problem is when in-experienced people try to put them together. I've built a few lsvtecs over the last 8 years and they all ran well. Bare minimum I would do:

Block:
-Oversized b16 pistons or ITR pistons (b16 = 11.5:1, ITR = 11:1). ITR pistons need to be machined to fit ls rods though
-New vtec oil pump and water pump, GSR timing belt
-ARP rod bolts on stock rods, resized big ends
-New properly sized bearings
-For simplicity a GE vtec conversion kit.
-New seals and gaskets throughout

Head:
-Good three angle valve job w/ proper backcuts on stock valves
-new valve seals
-mill head minimum amount for straightness
-plug vtec oil port in head mating surface
-new seals and gaskets throughout

That will give you a nice reliable setup with streetable compression and room for upgrades. I put together this same setup for a friend and the car is making about 195ish to the wheels w/ itr cams, comptech header and JG intake manifold.