I kinda agree partially with you there...a richer denser mixture would help spool the turbo up quicker...however i do not see the benefits of retarding the ignition timing down low as you have mentioned the low end suffers...and by quite a fair bit...
If we are talking about turbo spool alone then yes perhaps retarding the timing might help...but if all we want is just a richer mixture then wouldn't it make more sense to just richen up the mixture down low instead of retarding timing? also...i agree its gonna run hot as retarded timing does make the engine run hot...not a very good thing if you ask me...
I'd personally be more inclined to run as much timing as you can down low without detonation...running the engine as efficiently as possible improves power, torque and response...best case scenario for the engine...and as mentioned before...if his boost response is bad...it probably shows that there are restrictions in his system which should be sorted out first...restrictions plus alot of heat is not a good idea...