You can run 1.88 intakes and 1.60 Exhaust valves in a 273 without bore notches. You are getting close so you better check and give yourself some clearance. It also depends on valve lift.
There are no problems milling closed chambered heads small or big block. What do you mean by "wash out" ?
From what I've seen of the OP car, I do not think I'd change much. He has the best intake manifold and 65 heads probably flow better than most small port heads. Most good machinists will cast doubt on the need for hardened exhaust seats on Chrysler heads, especially when using stainless steel exhaust valves.