It's not so much that we go overboard about compressions role in performance, but there are probably dozens of folks that have dropped large chamber heads with sunken valves on an already low compression 318, cam it up with something fit for an engine with 2-3 points higher CR, then wonder why it runs like garbage.
Can 360 heads be used on a streeter 318? Absolutely. Should you match other components to suit the likely lowered compression ratio-without a doubt!