Update--
Put her back together and re-set the points (to .014 again). No improvement, same story. However, it dawned on me that the closer the points are set, the sooner they will make contact and the later the light will turn on. My objective through this whole thing has been to get that light to turn on later in the process of rotating the shaft/spark advance. SO I re-re-set the points gap to .35, just to see what would happen. It worked as I had thought, and I was able to baaaaarely sneak the advance to the F mark without the light coming on (well, the light came on AT the F mark). Thing is, to achieve this I had to rotate the points plate absolutely as far as is would go clockwise- totally buried in that direction, and same for the smaller 3-4 plate. This just doesn't seem right to me, I can't imagine that I would have to make such an extreme adjustment to get the lines to match up and the bike timed-- really, how could that be? My suspicion was affirmed when I tried to kick the bike on, which takes two kicks max normally, and it wouldn't fire up- not even close.
I'm racking my brain to fig this out- and also learning a bit about points theory, which is nice. Still, what could it be? Bad condensers maybe? They were replaced about 1000 miles ago.
Thoughts?