It sounds like your hotrod is a little different from what we see here. I too, am an experimental aircraft builder. My preference is sailplanes.
It sounds like you want to increase your prop power without exceding drop off efficiency. Without knowing all the details, and if I did, I might not be that informed, I might consider keeping the mags, stock intake, and going with a redrive. You will have to design it to fit the Lycoming, but, your engine is low compression, very efficient in flow dynamics.
A redrive will shift the power curve of the engine to allow a steeper pitch prop, and larger diameter. Any weight savings eliminating the magnetos, will be absorbed by the other components needed.
I had both sets of points on a Cessna 150 close directly after the airport had serviced the Aircraft. I was a student pilot back then and made a very lucky off field landing during one of my solo cross country flights. It was a text book soft field emergency landing. The FBO even got to fix the points and fly it out! That experience and several others in outboards, automobile engines led me to ask questions about everything untill was worked out, and even then things went south.
I wish you luck, and success.