Cam,
I will mill the heads only if they need it. I am going to rebuild the bottom with stock parts, its been reliable for 150k and the cost is something also I considered. Most likely I am going to get new heads at this point. Mine are 91 heads and from what Ive read it would be safer to buy new than to work with the existing.
I am getting new lifters, pushrods,rocker shafts&arms,cam, timing chain/gears, and heads with the valves. Basically a new top end. With 150k on my engine im not going to save $200 in misc parts which if I dont replace them will probably fail. New cam needs the new lifters, and the pushrods need to be custom length for use with the new cam(I think). The rest is small change compared to the labor and time to pull it all apart if something "old" were to fail.
Basically Im saying about the same thing that you are- Im doing the work to the top end of the engine and leaving the bottom end alone. Im not looking for huge power increase - i think supercharging would be the way to go for that, but maybe get an increase of 20% with the cam,mild porting, headers,and TB. Well see.
Sorry for the long post
Steve VB
91 Navajo