The problem i found with the tiny modified brushed motors is the brushes are so small they tend to burn out pretty quick.Brushless last and last.
Lipo`s for this scale are nearly as cheap as Nimh`s and with regards the retailers saying you can`t run lipo`s with brushed motors and esc`s is true if you are a nugget and keep running them untill they go completely flat,it does kill the lipo,but like i said before,if you stop running as you feel the power tailing off,they are fine.
I aint trying to sell you anything squire,been running Lipo`s for nearly 4 years now and never had any problems with them
I even run Lipo`s in my old Tamiya Mountaineer,that has a brushed motor and an old ESC with no safety cut off,never had a problem or killed a Lipo yet.[touch wood for luck]