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FRC Tom is probably a good guy to give you some opinions on comparisons, I am sure he will anyway, since he currently owns '99 & '00 FRCs and a '01 Z06.
I certainly don't see the Z06 as a problem plagued car. I have about 6000 miles on mine, took delivery first week of Sept, and have not had a single problem. I drive it just about every day and do run it hard when ever possible. However, if you like some of the "comfort" options that the Z06 does not offer then you might want to stick with the '00 and make the mods to get the increased performance similar to the Z06 at stock.
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01 QS red/black interior,HallTech Carbon Fiber Air Bridge, Vortex Rammer,BPP shifter,BPP long tube step headers,street x-pipe,Borla Stinger Quad Round Tips,178 thermostat,MSD plug wires.
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