I run a pretty hot 489 and can obliterate the tires at will. However, I can also enjoy the car in every gear without doing so too. It's not uncontrollable or driving on ice, your foot determines the madness.
If I were you, I'd reduce variables with changes as well as phase changes in with the budget.
- Get the TKO-600 in and drive it. Be sure to measure the current crank centerline angle (use any measurement, carb pad, fan blades, whatever) and when you get the new tranny in, make sure its the same. Then make sure it drives nice
- Do the gears, and play some more, see the beauty of your changes and pay close attention to the RPM range you enjoy the car in the most
- Determine how much power you want after that. I see a nice 397 matched to the RPM range you want as being a ton of fun, add more head, add more stroke, and cam accordingly to meet that RPM range if you want more. Building a daily driver is different than building a strip terror. You need to figure out a wider RPM range and varying conditions.
Honestly, a good breathing 397 would be a ton of fun for an interim motor after the tranny and gears are done
However, I'd focus on a little less cam but more head/intake/exhaust flow to get RPM, regardless of displacement, in the end as a daily driver you'll be a little more happy at a stoplight with the a/c on.
I do expect you'll get the bug and eventually build a stroker, but it doesn't have to be right away.