Disappointing dyno results

Sounds like you need a new dino man not a smaller carb. The engine will only use as much air flow as it needs. You can put a thousand CFM carburetor on that motor if it needs 600 it's only going to draw 600. Now I'd try a different carburetor sounds like that one was rebuilt screwy.
Actually a 1000 CFM carb will have very large jets so I would think that even though the engine is only calling for 600 CFM it would still be running rich. While we know most of the details on his motor we still don’t know what part number carb that he is using.