Chris (Falcon) has the best set-up for sure (I was lazy in '93 with my long hot cable although as it worked for me I left it). Less of a fire hazard too from a chafed cable.
Still, need a thick cable to the solenoid even with a relocated solenoid. As to heat soak, nothing here will really help save a blanket or shield. If you run a OEM type Ford starter, a Powermaster or similar modern starter alone may solve your issue.
Batteries? Their like women.....gotta have one even though many are a pain the ass!
Seriously, it's a crap shoot as some love Optimas and others hate them. So, maybe a closed top standard wet cell battery (not sure one can even buy a one with the tops that come off any more).
I've run a cheapo Summit plastic battery box for years w/o issues. But, in a Cobra and for 'looks' see the link I provided as it has a pretty cool looking and quite functional hold-down set-up with a Optima type battery. It's a open style (can see the sides/top of the whole battery) while an enclosed box is highly recommended for a wet cell battery. Some sites also have some all-aluminum (and pricey!) fully enclosed boxes that look right pretty!