Yes, it is a working (but odd) combo. "Odd" only because of the one-year oddities of a 53 235 head, mentioned above (18 bolt head like a newer 235, and 2 bolt valve cover like the older 235 and 216).
$2,200 for a full, guaranteed rebuild (by someone who has actually rebuilt a 235 in the past) is a good price. You'll have decide if it is "worth it". You'd end up with a good high-pressure 235 engine. Any high-pressure 235 would cost about the same to rebuild.
A nice thing about your combination is the 2 bolt valve cover looks more like an original 216 (although the 54/53 combination block/head would not have the 216-style side cover).
A 261 engine or a higher-compression-head 235 engine would give you better performance. And, there are few different lubrication system advantages in using 58-62 blocks and heads.
