Your absolutely right, there is nothing wrong with a hybrid... With that said, a FULL molly chassis is the CHEAPEST thing you can do for a large about of weight savings imo.
Post pics of the plug chop plugs. More so then not, people assume they are rich when in reality bike is lean. If its not spittin and stuttering, then its not a rich condition. If its a deep hollow drowning, its lean.
Try a 160 main and see if it gets better. I also never had luck with cel needles. Im pretty certain i always ran dek needles. Id also try and back down timing to 4. Motor may not like that much timing?