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Both! You can build awesome engines out of either for whatever application you want. But with similarly built engines remember there is no replacement for displacement lol!
NA the LS7 is King but boosted the LS3 will make more power and live longer and is cheaper to fix
Ditto, on this, but it really depends what you are using the car for.
The LS7 NA makes gobs of usable climbing torque for road course work, while a LS3 supercharged into a LS9, torque goes linear off idle, and has so much more it even down low, really need to have PTM to hobble it a bit to keep the tires sticking for road course work. Hence the reason that the C6 z07 carbon with 427, is faster around a track than the Zr1 with supercharged LS9, since the rest of the two cars are close to the same, but just different motors in play.
Also to note, with how thin the cylinder sleeves are next to each other on the LS7, you can't really throw a lot of boost at it to begin with.
To answer your specific question LS3 hands down. It will handle boost better and be more reliable and lost longer IMO. NA the LS7 outshines it by far, as soon as you throw boost at it LS3 or even LS2 > LS7.