Nice saw! I had a modded 261 for a while myself.
As for timing advance - the bad thing is it is a pain to do and time on a chainsaw. It's not like a Chevy V8 where you can just bend over the radiator and reach out and twist the distributor. But it is easier than doing it on most motorcycles, so there's that(I had to swap in a custom timed cog in to my ZX-7). You don't even need to find TDC to advance the timing, you just have to index the flywheel off of itself and the chassis for advance. A protractor can tell you the advance in this case, let alone a degree wheel. When I was young, we timed V8's by feel. You would start at around 30-32* on sumfin like a small black Ford depending on the compression, and add 2* at a time to see how she ran. We had no dyno locally. The dyno was replaced by listening for detonation and the feel of the pants
So it would take all day or a few days to dial it in, and sometimes on the high strung small blocks a single degree would make a difference. And often we would have to redo it after the engine settled or when the weather changed. Timing would be the last thing we would set on a V8 before we tested it. But it was one of the most important things. Nowadays, the engine can sense how the burn in the combustion chamber is by sniffing the exhaust and checking the resistance from the plug.
On a chainsaw, you just nip the woodruff key, or remove it altogether. The key is more for indexing than anything. It will shear nearly every time there isn't correct torque on the flywheel nut, so it doesn't hold the timing in place - the torque does. Just take a couple degrees off at a time. A chainsaw has a hemispherical combustion chamber with only the plug protruding in to it. This is as efficient as they come short of a diesel. Some saws can take a surprising amount of compression and advance over stock; timing and compression that would cause detonation at
idle in a V8. Mitch Weba took the timing from an ms461 at 8* at start and 16* total, with a 360 coil sticking at 12*. That's not a lot. When my 044 blew 128psi after it was damaged, it would take 12* of timing advance and run stronger than a stock 044. It will probably over heat in summer in a hot place, but here I can run something like that all year if I wanted to. My 241 at 190psi took much less before it started to complain. The trick about timing is the balance between power and usability. With timing, it is easy to damage an engine if you do not know the symptoms of too much(odd vibration, not spooling to full RPM, lean/white odd smelling exhaust, acting like it has a limiter when it doesn't, or the limiter feeling like it kicks in too soon, very hard starting, lack of power, odd exhaust note). If the engine is only detonating part of the time at full throttle, it can damage your engine without ever being noticed until it explodes since a saw in wood is making all manner of noises and vibrations. I think you'd still notice the odd exhaust smell or look, tho, if you were keen.
Different engines will behave differently at different RPM - even from the same manufacturer or model. So you adjust timing to each engine individually.
Having said all that, most saw engines can take a bit of timing, especially if you work in cooler climes and 95 base octane(92RON) like we have here in much of Europe. Even just 2-4* might make a difference - especially in spool-up. I think timing is worth it for how much more responsive the engine is alone on smaller saws that do a lot of small cuts in succession. At the end of the day, it's the entire package that matters, but timing plays an important role.