Thanks lucky, that made sense. Looks like I'll be needing new points/condensers. But just to triple-check, I'll consolidate my issues into one post for verification.
Symptoms:
1-4: When plate is set all the way advanced (opposite of the picture in the first post), at 1000 RPM, the strobe light shows the full advance mark (1-4 | |), which means the timing is too retarded. The firing mark (F) was not visible, as it was to the left (counterclockwise) of where the strobe was showing.
2-3: At 1000 RPM, the strobe light shows between the timing marks (2-3 T F) and full advance mark (2-3 | |), which means the points blocks are unevenly worn.
Solution: Replace points and condensers.
Am I correct in my diagnosis?