Work on the pump first, then add more power if necessary. If you can see that the leading edges of the impeller are beat up, then there is also a good chance that the tolerance between the impeller and wear ring is also shot. If you don't want to spend much, and you are mechanically inclined, you can buy a kit and do the pump work yourself. However, don't expect professional results, or 80 mph. If you can afford to spend a little more, send the pump to one of the well known pro shops, and have them do the work. Most of them have been doing it for decades, and know how to make a jet pump perform.
If that doesn't satisfy your need for speed (and when is it ever satisfied?), then a step up to a 455 Olds is a very good one for a boat with a small block Olds, and probably not all that expensive. (again, don't expect to bolt it in and run 80.) I've been there and done that with respect to the pumps and the engines, and now I have a professionally built pump and a healthy 454 Chevy engine.
SteveM.