My dos centavos - You are a mature, experienced, mechanically sympathetic rider, shop at the "Big 'n Tall" store, and there's no substitute for cubic inches. I vote for these parts:
PART No. 200074C ; BIG BORE KIT, (ALLOY BARREL - INDIAN MADE) with forged 8.5:1 piston ; £319.00
PART No. 200480 ; COMPRESSION PLATE (ALLOY), 500cc, 2mm ; £12.50
All that is about $440 USD, the shipping is likely $60 more, so $500 gets you a "man" motor. The forged piston has some hairy valve recesses milled into the top. A Dremel and maybe 30 minutes could smooth these out, notching back the compression a bit and removing some pre-ignition carbon collectors. The $15 USD compression plate is backup if cranking compression won't settle down to a polite 125-130 or so after the rings break in. As you say, the intake cam can always be retarded a tooth as well, and you'd have enough compression to make a perceptible difference. Maybe tighten up/replace the centripetal ignition advance springs to keep "full retard" properly located to prevent surprises when kickstarting.
I think the iron barrel is OK where it's always about 50F, but it just adds something else to worry about. If you want, I'll give you my old iron barrel and you can use one of these 0.040" over Bullet Whisperer recommended pistons. $120 USD, mebbe $150 by the time it hits your door, a $60 local bore job and you have a nice 500cc running at perhaps 7.5/1, according to BW. You can always drill out or notch the fins on the barrel to increase exposed surface area like we did in the wayback. So about $200 or so out of pocket would get you a better piston and improved CR, but heat transfer won't be as good as alloy. As long as you aren't flogging it hard it 's likely all good though at New Mexico mountain temps.
PART No. 42877/40 ; PISTON, 84mm +40, 9:1, C/W RINGS ; £88.00 (about $120 USD)
Cheers - ACR -