Jason,
It looks like your following pretty close to the curve posted in DTD. Bear in mind that DTD doesn't account for your environmental conditions, and your logs are deffinitely not flowing as well as a set of small tube headers. If you have the means to advance the cam (remember to recheck your valve to piston clearance just to be safe), and don't mind the work, you could try advancing it 2-3 degrees to see what it does. Typically it will just shift the curve around and not really affect the gross number too much.
Actually I believe you can run an iteration in DTD with the cam advanced. Down in the cam profile section, there is an area where you can advance/retard the cam timing. Doing so should move the curve in close approximation to what you would see in the boat. I would also use the HP manifold and muffler selection for the exhaust as it probably better emulates a very restrictive log setup.
All in all I'd say you're setup is running pretty close to what should be expected and I defintely wouldn't cut the impeller down to a B as I don't feel there would be an adequate tradeoff.
If you're looking for more speed, concentrate on getting the boat out of the water more, and that should allow you to run faster.
Good luck,
Chris