Chris,
I find the CB500/550 Four to be my absolute favorite bike to ride. I've ridden hundreds of bikes in my 48 years and have restored several different models as part of my hobby in recent years. The 500/55- Fours just have a balance about them, a riding position, and "perfect" blend of handling that I find most satisfying.
As such, I think your choice to go for more power is a great idea. I like the way the 500's cylinders sit-up straight and the head cover area far more than the 750's. I had a very close friend that has his 550 bored out to 600+ (I can't remember, but it was a popular big-bore kit), added a nice cam, bigger carbs, K&N's, and a 4/1 pipe (I think RC). The bike sounded awesome! It might have been ported, but I doubt it. That bike would wheelie, it would do burn-outs, and Gary could make it fly. I'll never forget him laying it over in tight left-hand curves while dragging his left hand on the pavement. The bike handled so well that he could make curves 1-handed.
With the smaller Four's higher rpm capacity (10,000+), good porting (very, very important), good cam, and some other real, sound choices - you should have a bike that keeps it's low speed manners and sound like a Maserati. The high-reving Fours with a 4/1 pipe sound so awesome. I think it's a gret project and one I'd like to see happen.
Regards,
Gordon