First, I am amazed that a 1 deg. retard can make such a big difference. Sounds like you're running a BBC, and getting the same HP on meth. as we used to get in our blown fuel AA/FC 427 BBC way back in 1971!
I don't know what a "state of the art" mag. is now-we ran a Cirello, with no advancer, period. Started and ran with 50 deg. lead, IIRC. But it sounds like it doesn't vary the timing for crank-twist, and you can probably pick up a little torque/HP if you can figure out a way to trigger it differently. The dyno will tell you if your changes are working. Cyl. 8 is the most affected in a front-drive setup, which means just about all BB and SBC's. If you can set up cyl. peak pressure or actual press. vs. time instrumentation, you'll see the results without the dyno. I think the next cyl. to be most affected is no. 6, following the power strokes of 4 and 3 on that throw just ahead of 6, but it won't be as retarded as no.8 because of the shorter distance involved.
Note that none of the above includes anything on crank harmonics/vibrations-I really have no idea how they affect timing, but when your pistons/rods are REALLY trying to turn that crank, it will twist elastically for sure. And it doesn't matter what kind of steel the crank is or how it's heat treated either!