I have a fairly built SBC with L98 heads. Read my specs below...
I do not know too much about the L98 motor has a whole, but I do know lots about the heads. These heads have 58cc chambers which is great for compression, but they have very restrictive ports. Even with larger valves and heavy porting, these heads will never flow as well as ones you can buy new these days. You can't get your money's worth from porting.
Even with a big cam, flat top pistons, tall single plain intake, and good carb, my engine is being restricted by these heads... With head technology these days, and such a huge SBC parts market, you can buy VERY good heads for very little... As little as $1000 for aluminum heads.
The L98 was a motor from the smog contious 80s, so it was probably not meant for serious horse power (just taking a guess here). If you plan to stay the SBC route, the best are the engines from the late 60s and early 70s... They had nickel addative in the casting which made them stonger, better for boring past 0.030... Many of these were 4bolt main caps, which I believe the L98 block is not. 4bolt mains are also good for strocked motors.
That being said... if you are looking to stay UNDER the 450 to 1000 horse power range, and want a well rounded engine, with decent fuel consumption, then a rebuild is fine with what you have. I think 2 bolt main cap SBC motors are good to 600hp before you send the crank thru the oil pan.
If you are looking to build a mild race motor (450+ horse power), there are better options out there...
With a simple change of heads, my motor can make a decent 480-500 hp with the current setup... but my ported L98 heads restrict it at 390-400hp.
The good news is, if you are feeling cash-strapped... the L98 heads fit on any pre-LT1 motors.