boat engines are completley different from car engines, different cams, carb, starters, alternator, distributors. most marine engines come from the automotive origins, although a few are stirctly industrial usage.
by attempting to convert to a 2.3 you will cause more frustration then you will ever see in benefits. my suggestion to you would be to rebuild what you have install a 4 barrel carb and run it lightly. by keeping the secondaries closed, you will enjoy better fuel milage than a 2 barrel will offer (just look at the barrel size and you'll see what i mean). run hard, the 4 barrel will use more fuel - keep it under 2800 rpm and you should find it reasonable.
OMC doesn't make sterndrives anymore, and although they weren't a bad product, they weren't overly good either. parts are becoming more and more scarce. so eventually the whole issue will be scrap.
in order to convert to a merc set up, you would need to fill a huge hole in the transom and do major fiberglass work, i don't think it's worth it considering the age of the boat.
marine parts are considerably more expensive than automotive because of the enviroment we expose them to as well as the lower volume of parts produced. however, you need to use marine parts for the durability.