I have an original 1986 Grand Prix with the 305 4bbl / 200R4 / PegLeg Rear.
It's only got 50k on it, so there is no real reason not to run the 305. All I plan on doing was letting it breathe (headers, intake (with EGR, keeping OBD1)) and just go..
Ive contemplated getting more power out of it, but ultimately decided not to, because at the end of the day, you will have more money into a modded 305 for less power than putting less money into a 350 making more power.. as its been said, there is no replacement for displacement..
So, what I decided to do is Work Backwards.
I am going to put 28 Spline, Auburn 3.73 Posi in it, then beef up the 200R4 to handle 400/450HP, and run it. That will give me a little more low-end, and it won't be obnoxious on the highway RPM's (with the 200R4's 4th gear) and then I would be ready for if/when the 305 goes t*ts up.. At that point, I would be inclined to mildly build a 400 poncho (350-375HP), and at that point, everything behind it would be Bolt-It-On because its Ready To Go.
It's all in perspective, and the long game. All I did was choose to prepare the rest of the drive train for something beefy up front.. Its not like a built 200R4 and 3.73 Posi would have any issues with a weak 305 in front of it...
I thought that would be better money spent preparing the rest of the drive train to get rid of the 305 than beefing it up for its inevitable replacement.
*tosses two cents on the table*
-Gonz