I kept an 1989 HJ60 with original 2H non turbo unoverhauled engine and it was having 425000 kms on it without a single spanner on it, and I was using Delo Gold 15W-40 and it used to consume almost 3/4 of a liter only.
I would suggest to replace with 1HZ.
The reason is that 1HZ got discontinued in 2009 and spares can easily be managed secondly its a workhorse engine with 129 hp as compared to your previous 2H i.e. 107 hp.
Although 12HT can be a bolt on solution but its very old now and it would be difficult to find a clean engine and later on its parts will be headache too.
I still miss my old beast sometimes 