Op wants "the most reliable streetable engine" and has "crap for experience with these". Both the 7M and JZ are respectable streetable engines.
He has had "0 luck with the 7m due to the previous owner and my own neglect". We can't help with that.. either engine will die if you point a gun at it and shoot it.
So.. the OP is "trying right now to decide on which engine to go with". His goal is a 400 HP daily driver. A lot of people have a mistaken belief that this is easily achieved on both platforms. I think we would need to know about what the budget is for this type of a build. Easily attained providing you have $$. Because the OP stated he knows crap about these engines, I am guessing that he would need a shop to do the work. I have a shop do all my work and its not cheap by any means. You guys with the skill set can fab things that us people without skills have to pay dearly for. A warped flange can cost us 100-200 bucks for a shop to dick around with as compared to the 15 min to an hour it takes for a skilled "home-boy" to do himself. 400 rwhp reliably done by a shop isn't a cheap journey. As well.. just from personal experience... you can do 400 rwhp on the 550 injector/Lexus AFM upgrade on a 7M. Its doable, but you may have difficulties with fuel control (i did, but others have had great success). Not familiar with upgrading the 2jz so I will be silent there...
OP stated, "I however know nothing about 7ms except for if they have a bad oil pump, it eats rod bearings and their head gaskets go bad every so often if not taken good care of".
The above isn't true. The oil pump is fine and if you shim it it can be a bit better in a 7M (mine is shimmed). The rod bearings usually get eaten because of improper build or people driving with a bad headgasket due to contaminated oil. Every engine should be taken care of....
Because the car is currently a N/A 5 speed (W58), I would say.. don't swap anything into the car. Buy one already built.. forget about painting yours. You'll be waaaaaay farther ahead doing that. There are well built MK3's with over 30,000.00 into them out there that you can pick up for under 10,000.00. They have already done all the headache stuff and you already have a good picture in your head of the flaws. Just get the engine properly tested prior to purchasing. The first thing to do is the very cheap Co2 test at the rad. The rest is compression/leakdown test. Tons of advice about what to look for.. but that's the way you should go unless your car is in very very nice condition.
Then I would go with a 2jz swap simply because your starting with a N/A MK3. Get a front clip.. and have at 'er. My opinion (without doing the grandstanding.. because you already know my 7M > all)