Stopping the knock: Lower compression and ported heads...

I can't recall who wrote it and where, but someone mentioned that I'd be better off running a lower compression ratio that allowed me to run a cam that suits my driving style.
Smart words.
I'm not interested in drag racing. A drag race car often needs a big cam, a big converter and it spends its time at WOT for several seconds, then put-puts back to the starting line again. This car needs to idle in traffic, roll along at 20 mph in residential streets and run on the freeway at 2600-3000 rpms. Fuel economy isn't the top priority but it is a factor. Idle quality is of little importance to the driver of a drag car but I'm getting tired of the car shaking at stoplights.
Now that I'm running less compression, I'm thinking about moving on with more changes to make the car more fun for the type of driving that I want to do. I like the feeling of a car that has instant off idle throttle response. Currently, this car feels loose at any speed at part throttle. Sure, it scrams once I lean into it and the converter decides to tighten up but I miss the immediate response of an engine built for torque.
Yeah, these changes I'm contemplating DO include another cam swap. A milder cam will choke off power at the top end, but so what? How often does a street car need to rev to 6500? The milder cam will certainly idle better. I could switch to a 3.55 ratio from the 3.91s I have now as well as going back to a tighter, bigger converter.