Your engine just needs tweeking.
My little 9.2:1 compression, 2-bbl 114 hp 2.3 Cologne V6 in my 1982 TF Cortina could do 118 mph after a big single exhast and cherry bomb resonator. Unlike your stock 2.8 US exhast system with its HEAPS better 3 out header, my stock V4 headers were inferior in every way to yours, yet it sounded so good. It started off with a C3 auto, ended up C4 Mustang 2.8, and got an IHI turbo and Impco carb for LPG.
I got rid of it due to new job, family pressures and a new house.
A 390 Vac sec 4-bbl and the exhaust mods you made are the only changes to kick start it. Then have your Duraspark re-curved to suit.
I'd take the heads off, have them resurfaced or welded up to get 11:1 compression , and then go for Pinto 2000 power pack valves and a 280 degree Schnider cam. Then look at a certain kind of water injection.
The Pinto guys (led by David Vizard with the Pinto SOHC 2.0), found total compression Ford engines can handle is huge if an anti detonation fluid is added. Early systems were above carb venturi Edlebrock Varijection, or above carb venturi washer bottle with two brass 16 thou holes or washer squirters with four failsafe systems.
One simpler New Zealand devised system eliminates four fail safe systems by a restricted up draft water injection system (it needs no starter solenoid, no hobs valve, no manifold pressure sensor, and it allows static advance to be wound right up. I'm running 12.7:1 compression with 87 AKI fuel on my Mustang with one of these kits from
http://www.dave-cushman.net/misc/mannject.html
)
The Offy 4-bbl with all the above mods will be a stout day to day driver, and the extra power will mean the Porsche 930 Turbo style gearing will be endowed with Mustang GT power. You'll easily get over 190 hp with the following BEIGHT modifications.
Breathing (4-bbl carb and Offy intake, better cam, better compression),
Exhast,
Ignition (Fat spark from the Duraspark II is ideal),
Gearing (stock SROD wide ratio is fine when you start to get the engine past 5.0 2V GT power levels)
Heads,
Timing (Recurved ignition Static 20 - 22 degrees, full advance 32 deg at 3500, with anti detonation via Robert Mann Water/Methonal injection)
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