The stock heads ported with larger valves are adequate for mild engines and are definately better than stock, but you can find cheap/and or used heads for reasonable prices that will make more power.
There's actually quite a few articles about porting the E7TE high output heads and you can pick up a decent amount of horsepower. If you check out www.powerheads.com they have CNC ported HO heads so you can get good power out of them.
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2005 Suzuki Hayabusa GSX1300-R
1980 Ford Thunderbird - 255 V8
ported heads, 5.0L ported stock headers, O.R. H-pipe and Flowmaster 2-chambers, dual roller timing chain
hi-po Mack Truck hood emblem 
1985 Mustang GT 5.0L T5, F-303, GT40p, headers, off-road h, flowmasters, MSD stuff, etc.
Sold 02/06/04 
1989 Mustang GT ET: 13.304@102.29 mph (5-24-03)
Sold - 1998 Mustang Cobra coupe, 1/4 mile - street tires: 13.843@103.41 (bone stock)
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