Cylinder Head decision

If I were in your shoes and short on funds I would look for a decent running 5.2 (or 5.9)Magnum and not mess with the 318 unless you want to rebuild it after you verify the short block is tired.

Still, you wiped a cam lobe, you concern should be metal in the engine. Have you addressed that?

Have to agree,you can buy a 318 or 360 magnum for less that $400.00 for those 302 heads.
Magnums have great heads compared to 302's. Double quinch pads,flow on intake and exhaust is way better stock and ported.
1.5mm rings and stock with hyperutectic pitons plus a roller cam,all win win.
Also the magnums have nodular iron cranks and l.a's,we'll I've always heard just plain cast other than of course the early steel crank 318 and truck 318-3 cranks.