All round motor is a little subjective because it depends on what you want to do with it. My vote is for a 1985.5-1987 6.9L.
Advantages of the 7.3L:
Stronger head bolts
Better glow plug system
Better water separator
Better valves
Better rockers
Better oil control (can be a disadvantage-I'll explain later)
Available with overdrive transmissions (ZF5 speed manual or E4OD automatic) for better fuel economy in stock form
More torque
More power
Disadvantages:
Thin cylinder wall; this makes the block more expencive to overhaul because reboring is not safe and cavatation is a problem
Head bolts are good but if you want aftermarket the cost is twice as much as for the 6.9L
The increaced oil control on the valve guides that eliminate oil consumption can lead to premature wear of the guides
6.9L Advantages:
Can be safely rebored, several times if desired. Stock cylinder wall is over 1/4" thick
Upgrade head studs are cheaper
Valve guides are designed to leak small amounts of oil. Sounds bad, but actually prevents a lot of wear and tear in the top end
Stock transmissions were usually a 4 speed stick, or 3 speed auto, both of which are bullet proof, rare 1987s could have the 5 speed
6.9L disadvantages:
Weak stock head bolts, 10 psi of boost is the highest for reliability, the 7.3 can take 15 reliably
Uses oil by design
Not usually available with an overdrive transmission, so MPGs will not be as good on average
glow plug systems from 1983-1986 are not as good, 1987 has the same glow plug system as the 7.3
Water separator is not as good and prone to leaking, 1987 also has the better separator
1983-1985.5 is prone to cracking the block at the block heater (avoid)
1983 heads are prone to craking (avoid)
Less power
Less torque
Summary:
The cavatation problem is enough reason form me to favor the 6.9L since there is no way to detect it. Both engines have the same potential for turbocharging, but the 7.3 can go higher without having to get head studs. Changes to the prechamber were made to the 7.3 for emissions, its not known if this is any better for performance, but the fuel spray is not directed as much at the glow plug on the 7.3. Prahaps this could mean harder cold starting but better fuel burn? Not sure but my 6.9 has always fired up easily even with a few dead glow plugs.
Performance is similar between the two engines, even if the 7.3 has the slight advantage.
I'm sure I missed a lot, but others will be sure to add more
