No, the old iron barrel Bullets are as you describe: dry sump but having the oil tank in the crankcase. Panthers also had this arrangement The UCE bikes have a wet sump engine. Apart from the fact that it says so in the workshop manual the oil pump has no return side, so there is nothing to remove excess oil from the sump and return it to the tank that it doesn't have. One lot of oil lubricates engine, primary drive and gearbox, another characteristic of a wet sump engine. You only have to look at an exploded diagram of the engine to realise that it is wet sump, albeit a bit of an odd design.
As for warming up oil, fifty years ago I would have agreed with you. In those days only monograde oil was available. This had to be a compromise and, especially if running straight 50 in an air cooled engine, care would need to be taken to warm up the engine to get the thick oil circulating before placing load on the engine. Then came multigrade oil, designed specifically to address this issue. More recently we have part and full synthetic oils containing all sorts of additives to reduce wear and pollution. They have also increased the viscosity range. Add to this big advances in metallurgy and things like nikasil coating on bores, all things that have not only reduced the wear on engines, but also maintenance requirements. When did anybody last decoke a cylinder head as a routine task? As for VW motors in aircraft - I'm no pilot, but don't you need full throttle to take off? Sure, I'd want a properly warm engine for that too....Nobody is saying just ride off and give it full bore straight off, just that gentle use warms up the engine more effectively than just letting it tick over for minutes.
BTW you may recall I fitted the same carb conversion kit as you, around the same time. I've just removed mine. Although it fuelled nicely I have doubts about what's going on with the ignition curve. Mine started to pink a bit, having refitted the EFI it now runs much better. I believe the earlier conversion with the replacement generator and ECU is probably a better bet. IIRC your bike isn't ridden anyway, is it unless you've fixed the back brake?