Steve, the Iraqi cars did get a heavier A/C system. They installed the "long" style GM Fridgidaire A/C compressor on them, as opposed to the usual R4 type compressor that most A/G body cars got, and I think they may have had a higher refrigerant capacity. I've had 3 of these cars over the years. The first one was a daily driver for me, and I understand what Jamie is saying about cool, but underpowered. I got the A/C system on that first car charged up, and that car was like a meat locker inside. The A/C worked really well. As for the cooling system, I'm not sure if it was any bigger than the standard V6 setup. The rad was narrower, and it had a deeper fan shroud (because the V6 is shorter).
Jamie, as I mentioned, I've had 3 of these cars over the years. The first one was a daily for me for a couple of years in the early '90s. Not very inspiring performance, but very reliable. The second one I picked up as a parts car in the late '90s, and the 3rd, I had from about 2010, until a couple of years ago. I was going to build it up with a mild 4.3 V6, but then I found the 1980 V8/4 speed coupe that I have now, so I sold it, and 4.3 stuff as well.
Its your Iraqi car, so you can do whatever you want with it. As you've pointed out, it doesn't need to be really fast, since you've already got that covered. I kind of like the idea of a small block in it, and the EFI would definitely improve driveability/performance/fuel economy. You could go to a Saginaw 4 speed, with the correct shifter, since that's what GM did on the factory 4 speed cars, and just use the 3 speed shifter knob for the sleeper look. The shifter location is the same on both 3 and 4 speed cars. I'd actually like to put a Tremec 5 speed in my car. I'd like to find out if the Tremec shifter location would allow for the lever to come out of the floor in the original location.
Build it how you like it, but save the original parts.