Yeah, given the same induction, CR, cam, heads and exhaust, theoretically a 318 and a 402 would make the same peak power; the 318 would just make it at a higher rpm. That's if you can physically turn enough rpm's in the 318 to achieve the same peak airflow as the larger motor does at a much more modest rpm. I think I read somewhere that, in the real world, that's not quite true, as the extra friction of the higher rpm would cost some peak power in the smaller motor. Regardless, the bigger motor will make more hp low and midrange - everywhere below absolute peak, and would be a much more flexible motor, and therefore a better street motor. Which is basically what you're saying, of course. I'm just adding my extra two cents because I'm quarantined at home and have too much time on my hands.
