Update: Here's what was wrong with my old 5.3L (quoted from Mic):

well tore it down today.....lol.... im glad you got a new motor.... the #7 was trashed.... was about to break up, was cracked all the way to the wrist pin on one side.....lol... ring land was broke in a few pieces... and top ring was toasted.... cylinder wall was tore up pretty good, but should clean up nice. half of the skirt was about to let go too....lol... good save.

I'm sure my 60E on't be too far off when I replace it...