IMHO, The engineer answered the question that you asked.ie
"how do I get more performance"
The answer he gave is quite a standard one, heads, cam carburation.
He\also assumed you needed a rebuild.
If your engine does not burn oil or make noises, then it probably does not require a rbuild at that lowmileage.
( who bludy set this post to replace characters???)
It may bethat your cam is worn from poor history of oil changes. In this caseyou will almost certainly need new rockers and shafts, as the swarf from the cam ruins the bushes.
If the engine is checked and found to be OK, the only REAL way to get better hill climbing ability is to increases torque around 2000RPM. while you may get a bit more from a towing cam, in general engine capacity is what gives torque.
So whatever you do toa 3.5 it will still not climbhills realy well in top gear.
A short 4.6 would probably answer all your problems without recourse to hand built heads, hot cams etc, and with a low compression to use cheaper fuel.
regards Philip A
apologies for the spelling /grammar, but I Have forgotten how to chnage the setting onthe post from replace character to add.

