Would be a good runnner. Nowadays lots of guys are running 440Source aluminum heads or Eddy RPMs instead of 906s. If you're starting from scratch they cost about the same, and make more power than stock 906s.

10:1 or 10.5:1 compression would be fine with aluminum heads and good quench (not sure if you're familiar with that). It will probably be trouble with 906s. You're actual compression with those pistons would likely be closer to 9.5:1 though.

Lots of guys will tell you to run a different cam (newer design), but theres nothing wrong with the 509s. Modern cams have more aggressive ramps which require more spring pressure and will wipe a lobe faster. The 509s are also fine with stock rockers. If you run the Stealths or Eddy RPMs the supplied valve springs should be adequate also. Comp also sells a version of the 509 that works well.

Lots of guys run 3 inch exhaust now since it is more readily available.

Id run a 750 or 800, but a 700 isn't terrible.

Overall, that combo still pulls hard.

I've had 4 '67 B bodies since 2007 myself