I have the LT-1 in my 94' and have had no issues with it (as soon as I had the correct t-stats installed). I wanted the extra HP because of our higher elevation and also the "cool factor". You can always re-prop your boat if you need to adjust hole shot or top speed. We've put on about 200 hrs (400 total) in the past 3 years and it has started up every time with no issues.
Definitely worth considering if you find the right boat. Don't get a trasher though just for the LT1.
1994 205, LT1