Re: aluminum head
Mercury originally designed that block from the "ground-up" to be under a cast iron head.
I wouldn't doubt it if aluminum heads were available then and they could have used them but didn't......... either to keep the cost down or they just didn't think there'd be enough benefit to justify the cost.
Aside from your being able to maybe run higher compression ratios (which means you'd be spending several thousand doing a COMPLETE rebuild/machine-work + the head head work, porting, parts, gaskets, etc.....), It's probably just not worth it unless you find one (probably 2) on a busted 460 for next to nothing (and can sell the other head)
I would be putting my money toward a newer rotten/damaged boat with a 4.3L + matching Gen II drive behind it to swap out......instead of wasting any more money in an engine that was discontinued long ago....
Just my 2 centavos.....
Rick