Well, I've heard of some shop in California buying an Insight for a project. I know this because I've talked with a guy who bought some parts off of the car. He doesn't even know if they ever got it done.

As far as keeping the electric assist, the problem would be in the engine control. I believe there is a total of like 12 computers controlling the car. If one senses something wrong (like the wrong engine being there), I highly doubt it would let the IMA work.

Also, working around those high voltages that the motor uses is no something to be under taken by the ill educated. It will stop your heart.