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I would do what you suggest first. It may be a less expensive alternative.
I don't own a Cobra, but my '66 Mustang has a WR Toploader and a 3.50 rear diff. It's quick around the city, but very "busy" on the highway. For my normal street use, it's fine. I'd rather have quick than fast.
My plan for the Cobra kit is the big block, TKO or TKO II, and something near 3.08 in the rear diff. That way, I can have the best of both worlds, while keeping the rpms down on the highway.
Best of Luck.
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