35 mph WOT power loss

Worked*

That hose is what brings heat into the car. Replace it with new heater hose, hopefully it was just an old hose and not over pressure in the system.

Regarding the kickdown, when the line pressure and the throttle pressure lever are set right the lever will be all the way back when WOT. You don't back off the throttle valve linkage to lower the shift point - that's the job of the governor and or line pressure (they each affect one another). It's more work, but it's the right way to do it.

The flare is also not something you should try and solve with the throttle pressure. It's a band adjustment or line pressure issue.

You're real close, but you don't like how it drives when the throttle lever is set where it should be and the flare is still kinda there when it shouldn't be. I think you need to put the throttle valve where everyone says you should, and then fix the band until the flare is gone. Then call some vendors for suggestions on Governor weights that will work with your shift kit and desired shift rpm at WOT.

Good luck with THAT sinkin in. lol