I'm going to be running a 318 with 273 heads... good compression. I have an Erson "rv" cam which has a decent lift, but not over the .500 that people usual search for. I'm running it on the street. It's all low end power. TTi headers, street dominator manifold, 3.55 gear, and best of all it's a stick.
Would a 340 or a 360 be better? Sure. Like they say, there's no replacement for displacement. But I won't be disappointed. Heck, I haven't even started this one and I'm already looking into building a stroker 318. It never ends...