I have a 2.0 bus engine in my 73 right now, which I didn't put in ... it's a boat anchor of a motor, and although I have to give it credit for not dying on me (despite several attempts to do so, which turned out to be just warning shots).
I know the compression is significantly lower, and comparably so is HP (though I think you might gain low-end torque - if you find a decent bus motor in the first place, unlike mine). If you plan to change all that and just use the case, then ... more power to ya.
The problems I'd had with mine were initially based on the fact that the 1.7 Djet wasn't working at all on that poor motor ... and the fact that it was only running on 3 cylinders for a long time due to something broken on the rocker arm assembly. Which broke again, in a different place, later ... lots oil. Speaking of that, I get ~500 miles to the gallon ... of OIL.
BTW, the dipstick is in the exact same place on the bus motor as a teener 2.0.
When I take it out, it's going to be donated to a VW parts guy in town. I've had enough of this poor ol' thing. My recommendation? Stick with a 1.7 for sure.
- Nelson