A nobel quest you are about to embark on......
My engine program has extended into a 3rd year starting with the purchase of a core 2.7L engine (opportunity dictated timing) and progressing to a point where it is nearly ready to assemble. I went the opposite way though. My matching numbers 2.2T engine stays intact and stock, the 2.7 becomes the hotrod engine.
The cost estimate you received is not far off. Wayne's book is a great start in education but there is much more to learn and the costs in the book are rather dated. Those costs assume your core parts are in pretty darn good shape and you're refreshing rather than 'remanufacturing'. The engines are 40 years old now, remanufacturing is likely more appropriate.
I bought a core engine with 'challenges' somewhat unknown but sufficient for it to see a dark corner of a garage for many years. Turns out I only really used the case, cam carriers and a few bits and pieces. The crank/rods/pistons/cylinders/heads all became garage art and I sourced other quality used parts to remanufacture because of condition. The internals were flat worn out and junk. This expense should not be under-estimated.
It is an extensive list of work tasks but all depends on your scope. If an original spec type engine is the goal and things are in good shape inside, the costs may be radically less. If the goal is a reliable hotrod it will stretch into 5 figures doing a *lot* of the work by yourself and depending on spec.
You can learn a lot by a tear-down (carefully bag/label things as it may be a while before you get back to them) to understand what you may need to replace/rework significantly. Then you can decide what to do from there. Warning: a complete engine takes a small amount of space in your garage. A torn-down engine takes several times more space claim! I have both a complete engine on a roller dolly and a torn-down engine in pieces. The 2.7L pieces consume most of a shelving unit full of plastic bins to keep parts organized! Don't worry so much now about cleaning parts as the old grime keeps corrosion at bay in storage.
Have fun!