Daily Driver Engine 318 vs 360, what one?

I think you need to build a car, not a motor. Meaning the parts behind the motor contribute to how it all works, too.

Looking at the modern cars, I see smaller high rpm motors with steep gear ratios in first and the rear, with one or more overdrives.

So, build a high rpm 318, but figure out how to get it to run really clean on the bottom end (EFI?). Then pair it with a 3.xx first gear 5 or 6 speed and a 3.55 or so rear axle. Should make up for the loss of the low end torque, and run hard on the top end.

Don't expect that to come cheap, though.