Before you start to think about mods, take the head off and check it.
B6304S 'leaking HG' = warpped head ( almost 100% assured).
These don't just blow HG's for no reason, usually lack of cooling system maint, too much heat, blown radiator, old therrmosat, etc. If there's a lot of white stuff from leakage around hoses and conections, you are most likely looking at a top-down cooling system re-furb, too.
Seen so many like this, probably more than two dozen last fall before I bought the '97 960 I have. Most owners don't do maint on a 960 like religion, which it is one of those cars that need god-like treatment.
As far as the cam's, having had a '94 965 with the "More HP cams", I would not try and go backwards to a motor that was far inferior with those cams, and lacked the low end torque the 960 needs, so I personally would not even think about it. The later 960 motor has more power than the early one anyway, the power 'under the curve' is greater with HP plus torque at much lower rpm's., but do what you want.