Max,
I do not have the K-Line engine, but I do have the early MTH scale PS2 one. The MTH is a nice engine and has good pulling power. Here is a video of it on the NCT display at Celebrate Fairfax (VA).
The cars in the video are MTH, but have no resemblance to the real AFT cars. MTH just used its standard 8 car passenger set painted for the AFT, while the real AFT used converted baggage cars for most of the train's display and storage cars. Getting either the K-Line AFT cars or the new Lionel AFT cars will be very expensive. However, 4449 was repainted into its AFT colors in the 90s (I think) and pulled a variety of cars (none painted in AFT colors) you can probably find.
Back to the K-L vs MTH. Based on pictures and comments here on the forum, the K-L GS4 is really nice but it is smaller than O scale size (traditional size). As Bob mentioned, MTH made several sizes. So I guess it depends a lot on what you are going to pull with it.