I don't see any evidence of oil aeration from too much oil. Things that I know can cause poor bsfc AND power: terrible port work with poor valve job, wrong cam timing, severe mismatch of parts like small cam and single plane intake, or really big cam and real tiny carb, things like that. Also odd it liked 32....I would think it would want more. Not a lot more, but still a bit odd. Did you happen to change headers at all? Could also be something not right with the carb. When I see things I don't like, I start looking at the easy stuff first, replace the carb with a known or just different carb, etc...
