Ace, not trying to be an ass pain, but, where does it actually say that? I have never seen a real (not snidal's) RE engine manual. Does anyone have one? It just seems like an engineering "don't" to make two surfaces seal perfectly in that manner. And certainly not a 3rd world process.
I'm just discussing the head gasket sealing procedure, not the "lapping the head to eliminate the head gasket" procedure.
With the spigot too high, it's apparent that the gasket can never seal, so we know that has to be short enough to let the head crush the head gasket to seal the oil.
With the spigot too short, the gap above the spigot in the recess around the combustion chamber permits hot combustion gases under pressure to get into that area. The only place that spigot can seal is at the top, against the head.
If that doesn't seal at the top, these hot gases can, and often do, go over the top of the spigot and down to the head gasket itself. As this happens, flame cutting takes place and erodes the head recess and spigot until the area of cutting gets big enough to compromise the integrity of the head gasket and the head gasket blows. If any detonation is happening, it happens even worse. When it does this, it often blows to the pushrod tunnel, and causes very high crankcase pressure, which is often the first indication to the owner that something is amiss. Upon disassembly and examination, this flame cutting damage has been seen to be the cause.
The higher the compression in the engine, or the worse the detonation problems, the more likely we are to see this problem. However, it is even seen on stock engines from time to time.
So, the answer is to fit the parts so that the seals work properly, and no problems.
We have a "hard surface seal" on top of the spigot, and a "soft crushable seal" on the head gasket. All that's needed is to set the height of the spigot to handle both seals at the same time. It's simple, really. We do it on every engine we build, and if we don't do it ourselves, we instruct our clients how to do it themselves. I have instructed people in India how to do it, by email.
Additionally, just looking at a combustion efficiency point-of-view, the crevice that might be left above the spigot on a non-sealing spigot/head interface would be included in "parasitic crevice volume" problems that should be avoided in combustion chambers. Areas like that which can get the fuel pushed into them and not have room to properly ignite can cause poor combustion because that fuel which is intended to mix with a certain amount of air is pushed into that crevice by compression pressure, and then the remaining mixture in the chamber has lean spots because that fuel is hiding in that crevice volume. This causes poorer combustion, excess heat, loss of power and fuel economy, etc. The same can be said of the volume around the top of the piston, above the top ring, which gives similar problems, and which is why people try to place the top ring as high as feasible, trying to minimize that parasitic crevice volume.
The Bullet already has very challenging combustion problems from the initial design, and really needs all the help it can get. So, dealing with this parasitic crevice volume, and sealing the combustion chamber at the spigot properly, can help both of these issues, and also be done in a way that the head gasket seals the oil around the pushrod tunnels too.
I have had people who could not solve their oil leaks after many tries, send me their heads and barrels to be properly set, and their problems were solved in our first try, because we have done this so many times that we know the procedure. We can run any compression level we want, and have good combustion, and never have oil leaks at the head joint.
So, it's really just a matter of knowing what the ideal arrangement should be, and accomplishing it to solve the problems. It's more than just reading a manual. The manuals are the most sparse information available, and primarily centered on repair, and not necessarily focused on correcting the factory shortcomings, or understanding proper engine building techniques.
Regarding the process being too much for "3rd world", I have accomplished it with a hand file on more than one occasion. If you understand the goal, and are careful with your work, it can be done by hand.