Vacuum advance is a fuel economy part.Nothing else.
When vacuum rises(foot off the throttle or lean cruise)the vac adv gives you more timing.
The more timing you can get into an engine(without adverse effects)the better your fuel economy will be.
So your reasoning is correct.However,it would appear you have too much mechanical advance.So when your vacuum pulls in you are over advancing causing pinging.
Chryco is right(as usual
)If you can get it happy without the vac adv then just leave it off.That's the easy way out although it's not quite desirable.
Re reg vs premium.you won't get any advantage out of premium unless you have enough compression to warrant premium.There's a lot more to it than JUST compression but compression is the main one.I'd say very roughly abt 9.5:1 is around where an engine could be happy with either.
Even if the dizzy is brand new the curve may not suit your engine.It sounds to me your curve is too wide by the symptoms you describe.