Sounds like your performance shop knows what they are talking about!
With TBI, you want an LSA of 112, or possibly above. TBI is built for low end grunt, and needs the engine to idle smooth. Valve overlap has a very negative effect on EFI.
It essentially lets fresh air into the exhaust, which the 02 sensor picks up, and reports to the ECM as being an extremely lean mixture. The ECM then dumps more fuel in to compensate, but can never put enough fuel in to do so. This kind of extreme rich condition is really hard on an engine -- You'll get fuel vapour blowby on the rings, washed cylinder walls etc.
Also, a lumpy idle is seen as a stalling engine according to the ECM, so it'll often be running a stall saver algorithm, which is basically just increasing the rpm, then slowly lowering it again trying to reach the target idle, until it detects another "stalling" condition (loping engine) and starts the whole procedure again.
My 89 350 powered TBI truck has an older early 70s mid performance cam in it, and suffers from all the above symptoms -- So I am speaking form experience here, not just theoretics

Needless to say, it'll be getting a cam with an LSA of 112 that is designed for a stock TBI 350 pretty quick here
