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Its a bad thing. You can easily resleeve a block with the Darton package when cylinder wear becomes too much. With the LS7 block, the sleeve is cast integrally with the block, and its a tricky operation to resleeve, basically costs more than the block is worth to do.
To the hotrodder or racer who uses his engine hard, an annual rebuild is a matter of course. With the resleeved LS1 or LS2 block, that's not hard or terribly expensive, with the LS7 block it is.