340 Cam Size

I've always been taught that there is ZERO correlation between cylinder compression (tested with a gauge in the spark plug hole) and compression ratio. In fact, changing cams (and nothing else) can result in a different reading on the pressure gauge.

That's true. However, it can tell us for instance if it has 180 PSI now, no way will a "smaller" cam work on pump gas. If it has say 120 now, then you have some "room" for a "smaller" cam.