1974 318 duster. Can I port/polish these heads and get enough power out of them?

I'd look for some 360 heads do a little porting and milling.

whatever you do to 318 heads if you do to 360 heads you'll have at least 30-40 hp more.
You don't want 360 heads on a 318 unless you can do something with the compression. They will drop already low compression to the basement, unless you use something like the 302 heads