The short answer is yes. You would need to use higher octane fuel to make it work and not cause the engine to self-destruct from knocking, but it would produce more power. It would also produce more NOx emissions. If you don't let it knock, it shouldn't shorten engine life perceptably and mileage should not be adversly affected.

The longer answer involves how exactly you would go about doing it on that engine. I've not worked on that system in years, and I don't recall the specifics, but I suspect that your timing advance is electronically controlled. Just bumping the base timing up by twisting the distributor might do nothing, or it might cause major complications. You may be looking at some tricky modifications to complex systems.

There are an array of performance goodies to pep up your brick. I'm sure that you will get suggestions. Most of them cost a little up front, but don't bring the penalty higher exhaust emissions and more expensive gas requirements.

When you look at the engine design, the gearing, the cam grind, vehicle weight, etc., it is clear that the brick was designed to be a work horse, not a race horse. My strategy is to leave the brick as Sven designed it. When I want to play, I drive my wife's BMW.