That is one hell of a deal. I recently sold a 96 1500 (5.7l) single cab short bed 4x4 with 77k for my mechanic for $6.5K that was in great shape but not as pristine as yours. I posted it during the week and got calls everyday until it sold on the Sat to a couple who drove 3-4 hours to get it.
I believe with older/niche vehicles savvy buyers care less about rebuilt titles and more about the rarity and if the repairs were done right.
There used to be a good following for 6.5L's with plenty of websites/sources of info and parts. I almost bought one years ago and had planned on updating and modding it to make it more reliable. Parts were really affordable and then there was a supply on new updated (Optimizer) long blocks that were fairly cheap (4-5k).
They also used these engines in RV's and marine applications. They updated the engines at some point (2004 iirc) for use in the Humvee.
To the OP you have to realize the negative comments come with the territory here. Some of them just wished they ran across it first and they would be posting about buying it instead of you lol