Exactly. And the topswapped car running the 3.4 would be making just as much power as the stock S/C'd car running a 3.2. In theory that is.
Yes it will be more prone to knock because of the raised compression. But if you have the mods on there to overcome that your looking into gaining a lot more power.
A while back they did a dyno on a supercharged mustang. The only thing they changed was the compression ratio form 8.5 to 10.0. They gained almost 30 HP. When you get to a certain point (around a 2.8 - 3.0) you start creating so much heat from the in effeciency of the blower that you have to strt fighting a loosing battle. raised compression lets you run a bigger pulley, And still come out on top.