The only way to make a short stroke engine work in a road race app. is throw gear at it. Probably not a very good street car that way.

500HP is not too hard, but wanting 7200rpm means you either need to stay with a 360, and use edelbrock heads or Indy's smaller 210cc head, or maybe go to a 340 style block and use a 3.79 crank and Indy's 230cc head.
If you go with a 4" crank, you'll need a 230 Indy head min. to get that rpm range but you'll make way more than 500HP. Not to mention cost will be alot higher with the Indy stuff.

If it were me, I would stick to the 360, and use edelbrock magnum heads with a FT cam and 1.7 rockers to get some lift at the valve.
Those heads need to be ported to make 500HP, but with 10.3:1 and the right carb (950HP) I think 500HP is easily doable.
I would also try to use lightweight stuff like Scat rods, light pistons, and a lightweight crank if you can afford it. The engine will act like it has alot more TQ than it really does helping with a taller gear that's more street friendly.