The canadian forces have C7's and C8's which are nice AR series rifles and well regarded by the troops especially the C8.

Bling was invented by and for guns. Nickel plating and ivory grips. For the best or worst of bling guns check out what the US army confiscated from Saddams kids.
Gold krinkov(custom cut down)AK's with nike symbols and even worse.

If you could go into a gunshop and get a rougher but just as reliable and accurate
norinco M14 for 300$ or a FAL what would it be?

As much as I like the 7.62 I agree with the armys reasoning for going to 5.56.
You can carry so much more ammo and if you have to engage targets out past 300meteres all units have something way better than a FAL like rifle grenades or sniper rifles ,heavier weapons or even airstrikes and artilery. The soviets had units where everyone had a AK74 except the best shot had a SVD so a basic infantry unit could have more range. A FAL would have been exelent in this role as well.