Don't really agree. The V8 is much smoother, more refined and has a bigger rev range.
In their day they were also far more powerful than the 2.5TD, so it's not really fair to compare with a much newer variant.
That said, a stock 3.5 is still faster than a stock Tdi... And off road the lighter weight and placement of the engine make them nicer vehicles with superior balance. And it's not as if you can't tweak a V8 either or simply unbolt the 3.5 and slip in a 3.9
The LT85 has a lot of gearstick travel, but it's not really hugely worse than an LT-77/R380 to drive.