I swapped out a 304 for a 360 in a 78 CJ7 and it was a great torquey motor. I did GM TBI conversion at the same time, which was great for cold starts etc.
My swap was even more direct, didn't have to mess with the tranny, mounts, or rad, but I still think it's a great idea.
If you can find a 304 and put some 360 heads on it, I hear those breathe really well.
07 JKU - 6spd - LSD rear