You should still be setting the gap. As the block wears, the gap closes down. this both retards the timing and gets you slightly closer to the point where the points don't open at all and you coast to a halt by the road side.

A different method to unload the point current flow would be to use an MSD box. That does a couple of things. First, it bumps up the voltage going to the coil, which in turn creates higher voltage sparks. And it does multiple sparks per ignition event at lower RPM's (MSD stands for Multiple Spark Discharge, not My Spark Disappeared!). This makes a noticable difference.

I'm using an MSD box on my turbo 16 valve 245 wagon. Megasquirt runs the ignition through the original Bosch 137 (IIRC?) ignition module, similar to the one being discussed here, only it doesn't do dwell control, that's still up to Megasquirt. Which is pretty smart about such things. Then the output from the 137 module goes either directly to the coil (and MSD Blaster 2) or to the MSD 6A box. I have this wired up so that I can bypass the MSD box in about 1 minute (just unplug the 137 output wires from the MSD input, unplug the MSD output wires from the coil, plug the 137 output wires to the coil), so it's easy to get back-to-back impressions of the difference it makes.

I'm getting ready to move to coil-on-plug for the 245, so I'm going to 'trickle-down the MSD box to the PV, and let the Crane XR-700 system drive the MSD box, which will in turn drive the Mallory Voltmaster coil. Hopefully it makes some difference on the PV too, although the PV's current system is already noticably improved over the stock coil and points setup.
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'63 PV544 rat rod, '93 Classic #1141 245 (now w/16V turbo)