Per,
looks like an Allison/Crane system to me, too. If I had your distributor, I'd replace it as soon as possible with the correct one. With that much ignition advance you run the risk of damaging the engine when it's operated under load. Under light load it may run pretty well, but under heavier load the early ignition of the mixture will raise the temperature in the combustion chamber which can lead to detonation or preignition.
Naj,
here's a guess on why the ignition is retarded at idle. The flame propagation rate of a quiescent air/fuel mixture is fairly constant, but it's much faster in a swirling, turbulent mixture. These engines appear to have a large "squish" area where the top of the piston comes close to the flat surface of the head. The mixture is squished out at TDC, resulting in a lot of swirling and turbulence in the combustion chamber. Coupled with the fine atomization of the injection system, my guess is that the flame propagation rate is very high. The faster the flame propagates, the less advance is needed. There, that's my silliness for the day; anyone else?
George Davis
'69 280 SL Euro manual