There are still a few people running 160's. Back before the wbody group had tuners and other means of KR reduction, it was one other way of controlling knock. There are many more options now, without the negative side effects.

As far as the SS and mods, I have first hand experience. Even with headers, DP, 104's, 180* 1.9 rockers, CAI and some small items, I could barely pull off running a 3.5 pulley. I could run nearly KR free, but had to run too rich of an AFR to quench that KR. Rich AFR= slow or slower than it should be.