Your ET/MPH simulations are REALLY aggressive. 480FWHP is going to be lucky to run 10.9x0/121ish at 3400. It's going to need to leave REALLY hard with superior 60' times to get to the 10.9x range.
Read Moper's comment over and over. It's about the overall package.
What works well for a 340 may not and likely will not be good with a 4" arm.
The BIGGEST reason that the "No replacement" comes about is because it's easier to meet an HP goal when you start with a bigger pump. If I want 550 HP, it's easier to get 1.1hp/ci out of a 500" engine than 1.6hp/ci out of a 340. Plus the range is much lower on the 500" engine, easier on valvetrain, etc.
I agree with what your saying, if your power need start to go above 1.2hp per cubic or over 6000rpm on a street car it's probably time to go with a bigger engine especially if it see lots of miles. But I guess why I wrote this is people latch on these ideas and take it to far like there was a thread a while back
340 vs 360 and in most people's minds a 340 was no match for a 360, But too me they both will make similar power with similar work and yes the 360 will make more torque and if geared right both with have similar performance but if you run 3.55:1 gears in both than yes 360 all the way that's another thing I believe if your not gonna gear your car properly than run the bigger engine don't run a 273/318 with highway gears unless its a very mild build.
On the drag simulator I had everything set to optimal.