That's exactly what I was thinking. Even if it's ok before you hone it make sure after you hone it to make sure it didn't get out of round from honing too much. .005 is what I've always heard for clearance on those pistons too. If you go much more than .007 they'll be slapping around in there and reduce the power output by not allowing the rings to seal properly.
With that combo I'd guess it should've made 425-450 hp originally.
That is a pretty wild cam for a small cube engine on the street but like duster340 said streetable is in the eye of the beholder. You need alot of compression to make that cam have at least some low end torque. Even then it wouldn't be great and you'd have to run a pretty loose converter and real low gears. Can you also handle 3-5 mpg on race gas? That's another consideration. If your after basically a race engine in a street car sounds like you've got it. If you want a nice mannered street engine that still sounds tough and can back it up drop some 9.5 to 1 slugs in it (if yours can't be milled down enough) work the heads over and put in a cam with about 230 degrees duration at .050 and .500-.530 lift. That'll get you a good mannered stout 340 that'll run fine on pump gas, have decent torque so you don't have to run a 5000 stall converter and 4:30 gears and probably even get 10-14 mpg if you don't go any deeper than 3.73 on gears.