Your question didn't state for what purpose this 261 is being used. I'd say if you are building a stocker the 261 head would be just fine and for normal driving there probably would not be a dimes worth of differance. Now if you want to really improve performance increased compression would be just the first step. The easy route as stated would be the 848, Inliners have been touting this trick for years.

It's easier to get forgiveness than permission!
1946 1/2-Ton Chevy
1953 Chevy 3/4-ton Factory Stakebed