I guess that would work well, its going to be a workout slamming through all the gears fast though! But thats just another $1000+ you have to spend on the car that you wouldnt if you went with a larger cube motor.

First off, the 302 was designed for a specific purpose...SCCA racing. If cubic inch was not a factor, It would probably have been a 350.
Second, I think this would have served the initial poster better in the History/Restoration section. For someone building an old block for a restoration, it's money well spent. You would get a more positive response and probably better info from members who are more aware of older parts and designs. And, would rather see an engine restored to correct configuration. Yes, if you are looking to build a performance engine for a performance car, a newer more advanced engine would be the way to go.
Like was told to me by and auto instructor former racer, there's no substitute for cubic inch and cubic dollar.

Build it! Theres nothing wrong with a 327 unless you dont like beating mildy modded TPI 350's and the hot rod LO3's

It will make the same peak hp within 1%. The average and peak torque will be way different along with average hp.