All valid points, but I think this is about long term budget. Yes, 306 is a little cheaper right now, but in two years he is going to want more cubic inches. Then he has to start over.
Now, of this was a choice of 306 with aluminum heads vs. 331 with iron heads, then I would say go 306. But, it looks like he will be stuck with iron heads either way, so that is really irrelevant.
Exactly