Race motor that is likely going to make expensive noises at some point in its lifetime - aluminum heads, because they are easier to fix. Knock the chamber out of an aluminum head and it can be fixed in a matter of hours. Knock the chamber out of a cast iron head and good luck on trying to find someone/anyone that will even touch it.
Street motor that is expected to start, run and live forever without failure - cast heads, because it's easier to make power with them. All we're doing with an internal combustion engine is trying to take as much cold and dense air as we can get, mix in as little gasoline as we can and try to make the cold air air as hot as we can. (No, this principle is not the same with nitro-methane, as the intent there is to load the motor as much as possible, so it can burn as much fuel as possible, hopefully without driving the crank through the oil pan in the process.)
Yes, you can run an additional point of static compression with the aluminum head. Point being, that additional point is pretty much necessary to make the same horsepressure. If you are capable of making more power, then you are capable of consuming more fuel and creating more thermal energy. An aluminum head is an excellent heat sink, to the point where it generally will require a different tune-up to make the same power as with a cast iron head.
If you're building a race head, where intake runners are getting moved aside and up, where valves are getting rolled over, where spark plug locations are changed or where chamber shapes are changed, then aluminum is the obvious choice. However, if you set up a cast iron head engine and an aluminum head engine up exactly the same, the engine with the cast iron head engine will make more power. And it will make peak power after much less warm-up time.
There are several reasons for warming a race motor before racing it - seating the clutch for a final air gap setting, warming up the oil to thin it down and checking timing one last time are some of the reasons, but one of the most important is to warm up the cylinder heads. Ever see a drag car towing to the staging lanes with a cover over the motor? It is done to hold heat in the motor. All that aluminum is radiating heat faster than it should, so you cover or wrap it up to hold in the heat. There's nothing being hidden from prying eyes, as most people don't know what they're looking for anyway.
