I wouldn't get rid of the 302 just yet, uf you still want to use the Bronco on the road. I did go with a 460 swp, but my 351W H.O. had blown up. Prior to that, it was hella fun to drive and wheel with. Look at what type of racing you want to do, is it recreational or just for fun, or more serious like the modified mud drags? There's lots of other things you can do, like that transmission shift kit or upgrades, axle gear swaps, spools, etc. depending on what tires you run. Some 35's and 4.56 gears will really wake up that 302. Unless you make some changes to the ECM, the stock unit can't handle any major internal changes like a radical cam or stroker kit. IT sounds like you've already got some good mods in the injectors, chip and exhaust. Ask what camshaft is in it, and look at getting a mild RV of pulling cam that will work with your computer/ECM.
The 88 modle 460 I am using is computer-controlled, and also not willing to accept many performance goodies. That's why I'm converting it to a carb, and eventually some DOVE-C heads. IF you go that route, you need to change the transmission, fuel system, motor mounts, and some other items. You will likely suffer in the fuel economy with the 460, but it can be built for more power than the 302 or 351. You'll still need to address the rest of the drivetrain to handle the higher HP and torque. JSM84