It's been discussed at length before....
It is possible to build up a 2.9 to get performance like that or more. But it becomes cost-prohibitive really quickly since there was never really an aftermarket for the 2.9L motor. You can bore it out, have a custom set of crank and cam shafts done, port and polish the intake and exhaust, run a Scorpio intake (twin throttle bodies FTW), put 4.0L valves in the heads, convert to a MAF system over the factory speed density, headers, etc.
But the bottom line is that unless you have use of a machine shop and it's just a labor of love to play around with, the expense of having all that sort of stuff done to build it up easily becomes greater than the cost of stuffing a 302 under the hood and calling it a day.
That said, a good full-on tune-up of a 2.9 can do wonders for how well it runs - I'm talking fuel filter, air filter, oil change (throw a cup of ATF in there while you're at it), plugs, wires, cap and rotor, TFI module (they're often bad, Autozone will test them for free), etc. I swapped the larger throttle body on the 2.9 that is currently in my choptop and it does pretty decent like that. I have an intention of pulling the motor and swapping it for the 4.0 in my 88 that I never got around to wiring up, while I have the 2.9 out I'll throw a set of headers on it and probably do a MAF conversion because I was able to pick the parts up for cheap. Do I expect mad horsepower gains? No. But it will probably run a little more efficiently and that's all I'm really after.