Personally I don't believe you would realize 20 hp gain on a 2.8. Remember that the 3.4 is only a 20 hp gain and it has a better ECM than the Fiero or probably even the 7730, DIS and a larger and better flowing throttle body and intake.
The 7730 does resolve some issues over the stock ECM and makes the engine more driveable due to faster sensor input and analysis by the ECM. Maybe even a slight gain in mpg, too. Probably the gain wouldn't be enough to really harm an engine.
The conversion to the 7730 would require the ECM, a knock sensor, a digital EGR and adapter and a wiring harness. All could be had for somewhere about $350 or less, assuming you continued to use the distributor for pre-88 engines. Pullapart prices for the ECM and EGR would be only $45 at the Augusta yard. I've seen the conversion harness go for as little as $150, but currently that vendor cannot be reached. If you're good at wiring and schematics, the pinouts are available online for free.
A 3.4 serviceable drop-in long block will cost you about $350 and about $150 for a full set of gaskets. Add $60 for a starter relocation jig and you've got that added 20 hp. High lift rockers or cam, headers and free-flow exhaust might bring another 10-15 hp for an additional $400 or so. Then add DIS because the engine already has the crank and sensor port, and a harness for a few more hp and you're getting probably 190 max. Maaaybe a little more.
A 3.8 NA will likely cost you $650 or more for a drop-in, plus ECM and tuning, harness, custom engine mounts, heavier clutch and another flywheel, custom transmission mounts if using an automatic, a newer transmission because the stock auto trans won't hold up very long to the 3.8. Then about another $350-500 for custom exhausts and you've only gained about 50 hp over a stock 3.4.
These are my guesstimates of mostly do-it-yourself prices for much of the labor that a non-professional hobbyist mechanic might be able to do.