better off just selling it and getting a 1.8/2L imo as thats where you'll end up anyway, in the long run it'll be cheaper anyway as for the price of a proper engine conversion you could buy one anyway.

insurance wont be to bad as you've got no claims etc probably wont be much more then what you would be paying if you tuned your current engine anyway.

you dont want to be getting into a position where you've taken the car to far to turn back, at least now you can strip your bits off it and fit them to a new car with very little trouble.