First, I am not a Pontiac guy. But that 305 is a decent engine. The only issue is the valve stem seal which allows oil to seep into the combustion chamber and when first starting up, you get a puff of smoke. I have the same 305 in my 78 Camaro. That Rochester carb., that is on there is much better than the Rochester carb I have on my 78 Olds which has the 260 engine. Furthermore, the advantage of having a Chevrolet motor is there are more parts for this car, and if you do swap it with a 350 or a bored out 350, no one could tell the difference sizewise.
Depends on your goals. If you want to go 2 to 3 seconds faster, and have the money go for it.