Today, dollar for dollar, is the 318 faster than the 340 ???

Is that the new threshold? These goal posts keep moving.

Hell, with the extra money one could get some work done on the heads that would easily push peak power over 400 "magazine-build dyno" hp.

No. No new threshold. You dug up and posted Steve Dulcich's Dyno run on a STOCK 340 to prove a point. Yes it did make 317 HP with just a bigger carb change. Would it be easy to make just under 1 HP per cube for a 318, NOT easy but it can be done. But not if you Flamingo* the 318 to stock CR and heads.

*Flamingo is where they handcuff your left wrist to your right ankle. You really can't do squat.