Couple reasons. First, the 340 pretty much needs 2.02 valves which unfortunately is not in the budget at the moment, due to the extra machine work. If and when I upgrade the heads to larger valves I'll build the 340.
The 318 has already been hot tanked, has new freeze plugs and bearings.
Piston choice for the 340 is also a little bit more difficult since most everything is out of the hole and the cams that are good for my goals are a little less streetable than what they are for the 318. The 340 generally RPMs higher too, making street driving all the less fun.
Also, just wanted to see how it goes with this level of build. Can't say I've ever completed something like this from start to finish. Thought it would be best to start with the 'expendable' 'teen.
Vague reasons maybe, but oh well.