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Would we not be better off to target a richer afr and add timing to achieve more power than a leaner afr and less timing?
It depends on the application. If you're racing with limited amount of fuel you better off going slightly leaner for fuel economy... If fuel economy is not a goal you can make it richer as long as it helps to advance ignition timing towards MBT. But usually dyno tells yoy what afr a specific engine likes. Some of them like rich mixture, some are fine working on leaner mrxture and yet producing best power.
As Shota said, it depends.
Some engines mix the fuel-air very well, and can make best torque significantly 'leaner' than an engine that has poor mixing and needs more fuel to fully utilise the oxygen in the air. There are other factors, such as the injector efficiency, timing, etc, that can also affect things.
You will need to experiment a little to find out exactly what your specific engine combination work best with.