Did it slow down at 34 degrees of timing? I would guess it did? If so I would leave it at 36. I was running my old 388 locked at 38, because it didn't pick up any more at 40 degrees. Sounds like yours might like 36.
I'd do a compression and leakdown before I would tear it down. If the compression and leakdown are fine, then don't worry about it. If the scratches are deep enough to matter they should show up on the leakdown test. Just make sure to do the leakdown at TDC with the valves closed of course.
As for the plugs, they look pretty good, but on an N/A motor with your compression and pump gas, I again would go on testing. Does it want more fuel? Did you try more fuel? I'd increase the jet size and see if it likes it down the strip. Based on your statement that it bogged down when the temp was lower I would guess it might want more fuel. If the oil temp is warm and the coolant is at least 140 it shouldn't bog down, it should run better with a cooler engine temp.
When you get to boosted engines and nitrous the window is smaller. On an NA motor you have a larger window to hit without damage. And If it goes faster with more fuel and the plugs don't foul I'd run more fuel even if the plugs look a little rich. The only way to know that is try it. Jet up 2 - 4 jet sizes on both ends and see if it likes it. If you are running a power valve in the primary only keep the split at least 10 I would say, maybe even more if it doesn't like the large primary jets around idle and cruising.
Its all a compromise, if it goes faster with larger jets but fouls plugs on the street than increase the split or start playing with larger PVCR and high flow power valves, tuning the bleeds etc.
Or get EFI, ha ha
I guess what I am saying on a low compression NA motor, just test and see what it likes. The plugs are secondary in my opinion, if it wants it let it have it, the car will tell you it doesn't like it before it should hurt anything, if its stops picking up then back off to where you were. If it goes slower to the opposite. Of course if you ever get detonation then back it off to the last known good tune (and fuel) before making another run.
Now if you were super high RPM, very high compression, or on nitrous or boost the window is smaller and stuff can go boom without much warning, then it's more important to look at the plugs before making changes, because if you make the wrong change, then you might have holes in your pistons.
Disclaimer: I'm talking small changes, not huge ones. Don't lean the jets both out 10 sizes in one change and then wonder why it hurt something. I know you wouldn't do that Dave but some people probably would.