Manny, as you must realize, I have a small layout and run it on DC. I totally agree that smaller sized locomotives and rolling stock look better.
I really like the K-Line S-2 switcher, also remade and with improved motors and looks by RMT, though the RMT versions are much harder to find these days and much pricier. The K-Line S-2 draws its' origins from the MARX trains version, which though a little more primitive in construction, is a reliable switcher also. The Lionel NW-2, though it runs on 027 curves, is nearly scale in basic proportion and is larger in size than the K-Line S-2. Same goes for the K-Line MP-15: Though NOT a scale engine by current standards, it is nearly scale in basic proportions. It will run on 027 curves, but again I prefer the S-2. Although I do have some MP-15's. I've also used the motor frame of the MP-15 for some custom kitbashes.
The K-Line Alco FA is also another good choice. Smaller and yet to good proportions, it it is based on the Lionel version and has its' origins from the original tooling made by Kusan. The nice thing about the K-Line version over the Lionel is the intact front skirting and the added details. Though the Lionel versions with dual DC can motors don't "growl" as much as the K-Line versions might do on 027 curves.
Not to be overlooked is the STARTER SET version of the MTH F-3, later re-branded by MTH as a Rugged Rails engine. With dual vertical DC motors, it is a powerful runner that runs on 027 curves. You can always removed any added circuit boards if you wanted to run on straight DC... though you can run them as is on AC. The early versions of this engine came with a horn only. It is far shorter than a scale proportioned F-3, which is what I really like about it. A good engine choice for adding a little variety to your motive power.
I shy away from the early DC motored version of the Industrial Switcher. It has a very small motor called the Hustler motor with a plastic gear off the motor. The version first introduced in 1993 has a larger DC motor and circuit board reverse allowing it to run either AC or DC. I add self adhesive weights to mine and they have no trouble pulling a 10 car train.
The K-Line starter version Pacific 4-6-2 is another nice 027 engine. Though it is longer, the width and height is compressed so it doesn't look out of place on a small 027 layout. The gearing makes it a very smooth and powerful runner. The Seuthe smoke unit K-Line used is the weak point of these, and often doesn't work when you find them used, and isn't worth replacing. This K-Line steamer also has its' origins with MARX tooling, which was improved upon by K-Line.
The Lionel 44 ton switcher is hardly scale... it's too big to be scale. Caution here: There is NOW also a scale version from MTH and Williams. Anyways, the starter set/traditional version I consider as just a center cab switcher. With a length just over 11 inches, it's another suitable choice for small layouts as a mainline engine. The postwar versions are usually bargain priced, and the modern era ones have dual DC can motors... for some reason all the modern era starter type Lionel NW-2 switchers only had a single DC can motor. The delrin plastic handrails Lionel made for the modern era version are the weak point of this engine. For some reason, even brand new out of the packaging, they're usually warped.
I prefer the smaller MPC steamers over the current Lionel dockside and 0-8-0 switcher. Lionel is currently using a very small motor in these which is prone to failure, and the motors are often out of stock at Lionel.
The small MPC steamers come with an AC open frame motor assembly, which is EASILY switched to the same size motor frame assembly, only the newer one with a blackened frame (unlike the silver from MPC) and a DC motor. Lionel has made a few times, a 2-4-0 of MPC origins with a DC motor and the reverse circuit board in the tender connected by a wire tether. I disregard that set up and run mine on straight DC. By adding self adhesive weights inside the frame, these easily pull a 10 car train.
Another one for variety is the K-Line RDC Budd car, also remade and greatly improved by RMT. Unlike the RMT S-2, the Budd car (RMT called their version the "Buddy") is easier to find and not as pricey. Once again, based upon original MARX tooling, it was made to run and look better on 027 curves. The RMT version was made in far more roads than the K-Line version, and among other improvements, has directional headlights and some have a flashing strobe light.
OH and I forgot, the tried and true starter set Lionel 4-4-2 steam engine and the closely related 2-4-2 version. These are basically modern updated Scout engines but with a DC motor, die cast shell and an operating smoke unit. Most though not all, had whistle tenders. The previous CEO's of Lionel Richard Kughn and Dick Maddox both said the Lionel 4-4-2 starter sets OUTSOLD all the other Lionel train sets all combined, which is another way of saying - outside of track - it was probably the best selling Lionel item for many years. That means replacement parts are not too hard to find, even if it means sometimes buying a second one for the parts (which is sometimes more economical). A reliable engine that looks great on 027 curves. The modern versions have no trouble pulling a 10 car train, unlike some of the postwar versions.
And using the Premium Lionel smoke fluid in these 4-4-2's will put out more smoke than you ever imagined these little guys could do. The difference in smoke output between the regular and Premium smoke fluid is quite noticeable - if you like that feature.
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The one drawback to DC power to the track is I find you have to be more diligent about cleaning the track and the locomotive wheels. Someone more expert on electrical matters told me that DC current tends to (and I can't remember how or why) attract more grime to the rails.
Whatever the reason, I do find this is a reality. But I find the advantages of DC power for smaller engines good enough to live with having to clean track a little more regularly. And whenever I put a new loco on the track, first thing I do is check the grease on the gears and the wheels to see how clean they are. So basic maintenance has now become habit for me.
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If you haven't looked, click on the link at the bottom of my posts to see some of my creativity with smaller 027 rolling stock and engines.... maybe it will inspire you too, which is why I posted it.