The K-H calipers are technically superior, but are they really an option? You can't buy the parts new. You can buy rebuilt calipers and new rotors, but also need the special spindles and hubs. The rare rusty ones that show up on ebay command high $$$. A member here has offered nicely rebuilt setups, but at high price (~$750) and don't know if he can even scrounge parts anymore. For the same price, you can buy a Wilwood setup w/ 4-piston fixed calipers.
Re SBP, you can now buy new 17" alloy wheels in SBP, so you aren't limited in any way.
Re DOT 5, I have run it in several cars for decades and have not seen a spot of internal rust since. If water drops got in the system they would not be absorbed and could theoretically cause rust depending on where they settle. Don't let water drip into your reservoir, which is true for any brake system. Fill it carefully and don't touch it, and you will never have to fuss with it again. I have newer MC reservoirs with tight-fitting plastic caps on all my cars, so no concerns.
Well, they're only an option because I have a rust free setup that's going to be lying around my garage for awhile.
While the 17 x 7 and 17 x 8 wheels aren't the best (only fitting a 225/45 on the front and a 245/45 on the rear) the handling will be far better than the 14" wheels and super tall sidewall tires he's got on it now. And for $1k you can get a complete wheel and tire setup front and back if he really wanted to as I debated that for awhile.
My only worry is that he wouldn't have enough money to do an entire front suspension, rear end, and brake swap to bbp stalling his project further. It's running right now, but IMO, it's scary dangerous. He definitely needs an alignment (his Dart almost looks hella flushed it has so much camber) and his springs are saggy (the car sits really slow). On top of that, he still has to fix a big exhaust leak as well (right now he can only drive with the window's down without getting high off fumes).