My requirements... what to build?

Did you guys all read this?
Right now plan is to leave the 904 in the car as well. Pull it, get it rebuild with some new and stronger innards but use it. Currently I do not want to cut the floor up for OD trans. The interior of my car is MINT and I really dont want to take it out. Also I dont do much driving long distance over 60MPH.
OP doesn't need an overdrive.
But he doesn't want to be screaming down the hiway either.
He has a line on an 8.75 with 2.94s already in it.
As you all know, a 318, working within OP's guidelines will never be lively with those 2.94s.
The 318, I don't care how you build it within OP's guidlines, with 2.94s is not gonna be any fun at all. That makes more cubes the only choice.Those gears, made the "which engine displacement" decision for him.
Now;340s are out, cuz OP said so.
And OP said smallblock.
That leaves the mighty 360/5.9 as the only choice.
A 360/5.9 can easily pull those 2.94s, and only needs a mild TC to be peppy off the line.After that, the ball just rolls downhill;
Pick your rpm of peak power.
Pick your powerband.
Pick your heads.
Set your Dcr. And
slam it together.
If you can figure out how to make your iron-headed engine survive in hi-pressure configuration, then go iron. But I didn't, still don't, and aluminum is just waaay too easy-peasy.

And when my 11/1 aluminum-headed 360 ended up happy with 87E10 at WOT, that was the clincher for me.I was/am sold.
That engine of mine has about 130,000 miles on it now, and has always burned 87E10. I cannot imagine how much money that has saved me. A lil math says maybe up to $8000 since spring of 2000.

Yeah I know; for a couple of hundred, OP can put 3.23s in the back, to run the 318. But you all know how much throttle it takes to spin a pair of 27" tires back there at 32mph, WOT is what it takes, and that is not impressive.
3.55s are out, cuz 65=2870 at zero-slip, but OP doesn't currently have a loc-up, so figure another 5 to 8% and you come up with 65=~3000. And what was OP's opinion on that?
I would like to have some fun when I am on the street in town and still be able to take the car at 65mph with out having screaming RPMs.
So screaming 3.55s are out
Almost screaming 3.23s, I also forsook because 65=~2730@5%slip
2.94s are the logical choice, cuz 65=2374 in loc-up with 27s. And ~5% more without the loc-up, so 2490, and OP gets to leave the A904 in there.
And that's just hi-way cruising!

So; the 360 is the only normally-aspirated,non-stroker,smallblock, that has the potential to solve all the problems, ........ er .... I mean achieve all OP's goals and targets.

With a lil forethought, so could a 340; it doesn't have to be a screamer in this application.