If you want the power that the HO engine would afford you, but the HO engine has such high milage and the TC engine is practically brand new, then rather than swapping engines, you should just modify the newer one.
Or you could do external mods. Underdrive pulleys, true dual exhaust, a new rear gearbox with a lower gear ratio, new injectors, and a new chip in the car's CPU are all relatively cheap ways to pump up your car without even having to mess with your nice engine.
If you are gonna mod the engine, then study deep the differences between the HO and standard 302 and then meet or exceed the HO's specs in those different areas.
You know, If you wanna get some head-turn cred, put a supercharger on.... how many people do you know who have a supercharger or a turbocharger on their late 80's Town Car? Probably none.
Back before I had decided to sell Dr. Lincoln (my 89) I had wanted to restore/modify it and had considered all of these things for myself. I was gonna be that guy who had the supercharged town car.
Hell, even without the engine work, or the supercharger You could probably add another 100-150 HP without too much trouble, and then the gears would speed things up even more.
But remember two things: 1) that is a very big, heavy car and it's not very aerodynamic either, so unless you go absolutely nuts, and I mean KARAIZIE nuts on mods, you're never gonna get it up in the league of a camaro/corvette, though you probably could take on some chevelle SS's.
And 2) That the Town Car is designed for luxury and comfort, and if you go too overboard with making it fast, then you could start to lose some of it's manifest benefits.
So, have fun and let us know what you end up doing. But to reiterate my answer on the original question, even though at 110k, that engine is still fairly young and should last quite a bit longer if properly maintained, it's also got twice as much milage on it as your practically newborn TC engine, so don't do the swap.
Instead, pump up the HO and leave it in the Mk VII and make that your "fast and furious" car, and keep your TC smooth, daddy-o. Make it faster, sure, but don't go nuts....use the Mk VII to go nuts on.
That's my plan for my Moby and Lucille.
My advice, leave the engine alone in the TC and just do the extra-motor mods I've suggested. That'll make a more than noticeable difference. And your engine left just as-is will be more than up to the challenge.