As far as milling the head, I wouldn't go more than 0.030. Decking the block...not a big fan of that at all. Two layer HG (thinner), not such a bad idea when milling the head, just as long as you keep your stock pistons. If you do infact replace them, stay in the 11:1 ratio.
Easy way out, mill the head and run a thinner head gasket.
As for the camshafts, I'm all for oem. ITR would do well in that setup.
Ditch that intake manifold and throttle body and get a skunk2 setup.