Is the 205 trans worth it?

I have an 88 st165 and the trans seems to be in good working order. It's had good synthetic gear oil in it for a long time. There is no grinding and shifts perfectly fine.

I want to swap the engine to a 3rd or 4th gen soon. I see a lot of 205 engines being sold with the trans. But it would save me quite a bit of cash to just put in the engine. I don't plan on going nuts with power, maybe 350-400 to hang with the modded Evo's/STi's in town.

It looks like the final drive ratio is the same between the 165 and the 205 but the ratios are a bit closer in the 205. It seems to me, that keeping the stock trans is a better way to go for me. I have to think about shipping costs being that I live in Anchorage Alaska.

Are there any other reasons that a 205 trans would be better?

If you're going for that kind of power I'm assuming you'll be doing some tuning on the dyno in order to get it. The 205 trans doesn't have the 2WD selector switch, so unless you know of a 4WD dyno near you then I'd suggest sticking to the 165 trans, as least until after you have everything else done.