I am going to take a stab at this using different terminology..
Don't taze me GN7...
There simply is no need to run different advance amounts on an engine that does not have to "pull a gear"...
A jet pump absorbs little/no horsepower at lower RPM's, but on the top end will absorb everything the engine can develop. This is virtually opposite what a car engine does. A car has to pull a large load from the bottom end, meaning that with low/no vacuum at the take off putting the engine under an extreme load when running through the gears, this is where a lower rpm advance comes in, keep the engine from detonating itself to death. Once the rpm level increases it brings in more advance as the load decreases.
On a jet boat however, the load increases greatly after you have already passed the point where lower ignition timing will help you. Virtually the only thing a lower initial ignition timing will do for you is aid in the starting of the engine, especially when warm.
A vacuum advance mechanism increases the ignition timing as manifold vacuum increases, which for lack of a better phrase will "never" happen on a jet pump.
Get rid of the vacuum advance on the distributor (you could just simply disconnect the signal hose and cap the carburetor port) and set the ignition timing for above 2500 RPM to be at approx 34*BTDC and a typical mechanical advance is good for approximately 14* advance, putting you in the 20* range at idle, which theoretically should be enough to get it to start reliably.
You should see a performance gain and you can use manifold vacuum readings to dial in the max BTDC ignition timing.
Right now, they way your set up is, you should be losing some timing right when the engine could really use it.
Hope this clarifies at least a little something something...
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