2.1 renault... underpowered, rare, and hard to find parts for, from what I hear.
4BT... too tall and heavy to really be worth putting in an XJ without a stupid amount of lift. Not saying this from experience because I haven't done it, but that's why I wouldn't.
OM615 series merc... kinda underpowered I hear. But I know a guy who has one in his CJ and likes it. Oh, and I know where there is one, complete (at least as of a few weeks ago, it was still there Saturday when I looked but I didn't check closely) under the hood of a donor car somewhere near here, in a junkyard that's gonna be doing a 50% off sale Sunday. Wanna go pull an engine? It's naturally aspirated... so you're gonna have to swap a turbo onto it. But you can probably grab the whole engine package for under 250 bucks.
VW TDI... at least IMO they are a bit underpowered for a jeep, in stock form. Can be tuned up though. Nice motors, good fuel economy, well built.
Cummins A2300 series... smallish, more similarly sized to the 4.0, I have almost no info on them but it's something to look into. Kinda gutless. 4cyl, a 6cyl version would be cool but I have no idea if they make them.