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The first thing your neighbor has to do is get used to high RPM. The only bother it causes is to humans. The engine doesn't care. Overdrive will knock 800 rpm off I think, so it will still turn over 3k at 70mph. I run my 1980DL with a B23 engine at 4k and get 27 mpg. Here on the coast many run the I/O penta boat engines at 4k and that's at wide open throttle.
Don't worry about valve seat recession unless in happens, and if it does, you'll know it. Then the head can be modified. Some recess, some don't, and usually it has more to do with weak springs and valve bounce than with unleaded fuel.
Don't bother with thick head gaskets, just use premium.
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