Just how ridiculous would this be?

I see lots of pictures with aftermarket magnum heads like tgese with a flat surface. The problem im have is this part of the casting that sticks out is hitting the back of the alternator case

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All Magnum heads, aftermarket or not are going to have the surface at the same place. There might be more material around the holes based on how it is cast but the end of the head should be at the same place on all of them. Otherwise they wouldn’t work with the Magnum accessory drive.

Not sure how it compares to the LA heads, but I know it works on my setup. And I don’t think I used a different spacer behind the alternator either, but been a lot of years. Really don’t think so, but I could be wrong.

I really think a non-AC water pump pulley (at least) and the non-AC alternator mount is all you need. Maybe a non-AC crank pulley.

I will say that I’m not sure how your current power steering pump will work though. Might need the standard LA power steering brackets.