Cal the 1275 distributor has more advance then the 998 engine and is usually a bit aggressive for the 998 engine as it goes up through the rev range, be interesting what weights yours has inside? been recurved already ?, whilst the engine may appear to run ok its not running at its optimum...
That maybe so, But I've been running the same dizzy on a 998 for the last 11years with no issues, other than cheap ignition modules. Yes the curve is wrong, the vacuum advance has been blanked off and I've still got standard weights in mine. But there's no way I'd swap it for a points dizzy or one with a electronic conversation. The last time it was on the rollers it was only losing out a few bhp at the top end, but being an asthmatic standard 998 driven on the road it never gets revved that hard anyways.
But I've been running the same dizzy on a 998 for the last 11years with no issues
Other than not running at its optimum on bhp/torque through out the rev range, and the auto box is masking the issues of the wrong curve, if you ran it on the rollers through the rev range the correct curve would show a increase, Any distributor can be dialed in max power at 4000rpm, its whats going on every 100rpm through the range where benefits of the correct curve is found.
Not something I'd recommend and it could be or could have already done damage. Slightly over-advancing for extended period can have an effect of 'chipping' the piston crowns over time, in doing so, lowering the CR and so kinda saving itself. It's far enough off to be on the verge of this occurring, though depends on how it's been initially timed in.
The curves for comparison (these are in Distributor angles and RPMs - double them for Engine Numbers);-

So right on the usual cruising RPMs of 2000 - 3000 RPMs (1000 - 1500 on that chart), it's WAY off.
Doesn't sound too sensible to me.