@ChuckN I’ll echo some of what others have said, don’t jump ship yet on what’s in the truck now.
Clean the deck surfaces up and take some basic measurements to determine where things are at and see what you have to work with. I’d have a hard time believing the compression would be that low with flat top (4 valve relief) pistons, the 461 heads should be around 64CC chambers, unless if it was rebuilt using super short rebuilders pistons, not decked, with a super thick head gasket.
A stock 70s smogger 350 should blueprint to around 8.5:1, with dished pistons, 76cc chambered heads, etc etc.
The bores might not look great, but if it ran well, didn’t have excessive blowby, smoke, make oil, or lose oil, I personally wouldn’t be above overlooking some things.
I suppose it does boil down to what you want from it as a result, if you are dead set on
not building a 327, I’d put it back together with the old parts, then you can continue to enjoy it, find a good 350, maybe a factory roller block w/mech fuel pump provision, that’s still a 350, go through it, put your go fast goodies on it, get it ready to go, swap them, put the old mill up for sale. I’m sure that someone would want a running “327” for their traditional hot rod/t bucket/whatever.
Having something that in some capacity runs and drives is more fun than having something blown apart for months. BTDT.
Just my 2¢ for free.