I'm rebuilding the exact same engine as you right now. The difference with my rebuild is that I'm replacing everything except the rods, block, and main caps.
289's are some fantastic engines, in my opinion. Not big by any standards, but they can rev the hell out of most other pushrod V8's of the time, and they're still relatively light.
The pistons in that motor are a bit dished. That, combined with the 63cc heads, are what cause the low compression. You may want to look into tearing down your bottom end so you can guage whether or not its worth just replacing the rockers. Most likely, you'll want to do a full rebuild with more new parts than rockers. Pistons aren't too expensive, reconditioning the rotating assembly and getting a new cam kit isn't a bad idea either. Really, there are tons of options.
Here is the path I've planned for my 68 289, incase you were curious ...
1) Stripped block, bored .30 over, cleaned and prepped
2) Keith Black hypereutectic pistons (KB281)
3) ARP everything
4) Shot-peen original rods
5) Edelbrock Air-Gap intake
6) CompCams 282S cam (with appropriate lifters, etc.)
7) AFR 165cc heads
8) 650cfm carb (Holley, most likely)
Built up, balanced, and put in front of a nice stout T-5 with some good gearing in the rear, I would love if this combo can give me 350hp and some decent reliability. There are lots of write-ups for 289 builds. Just search and read, my friend.