just my idea when i think about what you like to do and what seems reasonable as a project in the not too distant future.
buy a set of nonwelded heads with 40x35 valves (vw castings) make the 1835 or 1776 OR 1914 if you are doing the machinework. and use the 44's and have fun. just for looks i would use a type1 setup, the porsche fan is said to keep engines cooler so you can get away with more compression, it is really your choice there. i also would not run an W120, but since you have that use it.
maybe you can keep the heads for a future project (dragrace), but i would sell them and see what i need at that point.
I'm more thinking about a street toys than a pure driver to go everywhere, I already have my 68 for that purpose. That's why I was thinking to use the parts I already have and maybe upgrade the engine later to a more strip oriented duty.It will depends how many times a year I can race it.
The best would be a strocker with a bulletproof 5 speed, but I would like to use what I already have