Regular gas daily driver
yes to running 87 octane, assuming the heads are still the stock 317, the compression will stay the same at 9.4:1. since the LQ4s came in a lot of fleet trucks to run on 87 octane. However most likely no on the 350hp (assuming you meant at the wheels?) due to KR possibly. with a good tune you can get close but maybe someone else can chime in and have had experience.
considering the LQ4 on paper/factory claims 300-325 at the crank. with the ls2 cam (I dunno the specs on them), guesstimating you're prolly in the 325-350 hp crank range with a decent tune.
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From: Central Cal.
LATE LS6 cam: 204/218, .551/.547, 116 LSA. I have heard reports that the later cam is not as flexible as the early one, an loses some low end with hardly any gain up top. This likely explains why GM used the early one on the LS2 instead of the later one.
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Teching In
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This engine would be going in a truck so the ls2 cam would be a better choice with the better bottom end. Ls2 cam is very similar to a "stage 2" cam my buddy has in his 2500 truck. Can't remember the manufacturer.