Ok Jason, I tried to take a break from the fourms, I tried really hard, but you lure me back with your D series talk you bastard! I've talked to you a bit about this build, but there's some stuff here that needs to be addressed...
ok.. the first gen integra rods aren't any better. They are larger, but the material isn't as good, they don't hold (noticeably) any more power than some shot peened D rods will. Shot peening is free/cheap, and not only will it relieve surface stresses in the rods, but it also adds a sort of preloaded compression in the rods, which is good because the main problem is tensile stress (sorry, too many mugs at the pub tonight, I hope that means something to you). If you are dead set on better rods for cheap you can use B18 (LS) rods with a little machine work.
Running 12.6:1 is fine, Matt got mine to run fine without pinging before, we'll see on Saturday if we can do it again, and that's without a dyno. Yeah, you'll have to run premium, but it's all in the tune. Why wouldn't it be good for a DD? You rode in Jon's car, which is totally fine for a daily, and it make more whp and tq than a GSR! I say run the PM7/P29, Y8 head and a cam. The cam is actually very important because it lowers your dynamic compression, if you don't want to upgrade the valvetrain use a Stage 2 and save some cash.
DO NOT use an RPM switch, that is ghetto, if you want to do it do it right and use a compatible TUNED ECU, VTEC doesn't just depend on RPM! I can help you out with chipping and making you a harness if you need it, and if you are down to drive out here again I'll help you build/install it (just bring all the parts!).
Your parts look good, and you would be running 12.6:1 with PM7s and a Y8 head, that's what I'm running too. Just for clarification, the Y8 OEM headgasket is the same as the Z6, it's a 3 layer steel gasket, it just costs half as much. Everyone seems to think the Y8 is 2-layer, I think that's because people think it's cool to take a layer out to up compression, it's not. As for the ARP hardware... the most important thing is the rod bolts. The stress on the rods is amazing at high RPM, you don't really see the head lifting on NA motors, it's the rods that let go. For 30 bucks you can't get better insurance, AND you can re-use them, unlike the OEM bolts.