Sure, that will allow more air to be 'available' but remember, you have a relatively slow turning engine with limited airflow needs even at its upper limits. Consider the 350 cfm Holley 2300 carb has venturi openings of 1 3/16" but with the boosters and support brackets, the actual available size is much smaller. Look at the opening of the stock air filter housing and you can see it can pass more air than the carb can use - with a stock motor. That same housing and filter element is used on the 392 engine with the 4bbl carb. Same applies with the exhaust manifolds.
You can go with a taller filter element in the stock housing - as long as you can close the hood and you have enough length on the center post of the carb! Consider the k&n e-1100 element. It is used on the chrysler 360 engine which has higher airflow needs than our slower IH 304 engines. This taller filter element will lift the lid of the IH housing and allow air into the housing all around the edge of the lid. You keep the original pc hose connections. If you must pass the smog checks, just swap back to the stock filter element when needed.
Using the 'aftermarket' lid and base defeats the air silenceing feature of the factory housing. If that constant 'sucking sound' doesn't bother you then that will be your choice.
Bill bennett