Or he could go 427,428, 429 or 460. There are tons of 302's out there and they will make, in m experience, more power than a 360. The windsor is an option too, but there aren't very many of them out there any more. A block is getting harder and harder to find. Just because you are dropping C.I.'s doesn't necessarily mean you are losing power. A good swap for him to do would be put a 302 Fuel Injected H.O. out of a late 80's mustang into it.
I thought there was some sort of budget here. The 302HO parts are almost double the price of parts for a regular 302. A good cheap motor would be the 360, 390 or 351, and if he looks in the right places (
www.fordification.com '67-'79 only) he'll find the right parts/motors for great prices. As for anything bigger as you listed, just figured a little better than 6mpg would be preferred.