Yes, the 289 rotating assembly will bolt in fine. In fact that's currently what my LX hatchback has. It has a 1963 289 crank and rods in a 1989 "XXX" casting roller block.
The 65 289 heads and the E7 heads are actully pretty close flow wise. I believe the 289 heads have smaller chambers, and thus yeild a higher compression.
I would suggest some porting while you've got the motor apart, especailly on the exhaust side, and work on the pushrods dogleg on the intake side.
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1987 Buick T-type
1998 HD Electra Elide
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