It’s not a daily, have other cars. I live near a drag strip, but I’m not a racer. It may go there once or twice just for grins. Mostly a cruiser / fun car. Wrenching is half the purpose of it for me…
I'd get a bigger/better rear end under it first. Mostly because that one isn't likely to last, obviously.
Personally, I would also do efi. Mostly because it's quicker and easier (for me) to make changes as other things get tweaked (like stall, exhaust, etc).
I'd shoot for 3.2X-4.X gearing in the new rear end depending on how often you plan to track it and your speed limits and how long you can stand 3500+ rpm on the highway, LOL.
From there you can go wild and not wind up stranded by a busted axle. I'd go for headers before dinking with the motor. Motor stuff will all make more difference once the other stuff is there.
I'd build a new motor before I went with more cam in a 318, but that's just me. Nothing wrong with the little motor, but they tend to lack enough compression to work well with bigish cams.