It looks like you're awfully lean.
The plugs also to me look like extremely lean.
You said you put in a K&N, Did you go up at least one jet size?
(the 78's came jetted extremely lean for EPA)
However, it sounds like you still have clogged low speed jets
if performance at sub 4-3000 needs choke. The plugs
agree with that.
On my old 78 F bought new in 78, I installed a K&N and
drilled out the exhaust baffles (hey, I was young and stupid!
)
anyway, installed 120 mains and performance went way up.
Fuel mileage went from 42 to 50 MPG. Yes with bigger jets.