IMHO:
The fundamental concept behind optimum ignition advance is the same independent of the goal. Optimum power and optimum efficiency are going to be one in the same.
Generally this is true when it comes to an engine - it is always a question of efficiency. It is just a question of relative to what -
MPG is a question of efficiency relative to consumption of fuel. You want to get the most power (to the wheels) out of the least amount of fuel consumed.
Making the most power you can (performance) is efficiency relative to engine displacement - You want to generate as much power as you can within the physical restrictions of your motor.
Achieving the first is key to achieving the second.
The goal of ignition advance is to ignite the fuel/air mixture at such a time that the maximum force is exerted on the piston on it's down stroke. To a first order approximation, this means that you want combustion to conclude very near TDC. Too early, and your engine is fighting against the pressure caused by combustion (detonation, pinging, loss of power, etc). Too late, and the mixture combusts worthlessly while the chamber is rapidly expanding (downstroke) - yielding little to no force on the piston.
In a micro sense, this is a simple thing. You can measure power output (which is going to be equivalent to efficiency) and adjust until you find the maximum.
The problem is, your engine operates in many drastically different environments, and the "perfect" ignition advance for one environment is going to be very different than that for another.
So you need a way to set it differently for different environments.
I will spare everyone the diarrhea of the keyboard that it would take me to explain how a distributor, and it's different types of advance, work - because you all know that already. I will just supplant that by saying really the only way that **I** have the patience to try and tune ideal advance across all environments (and hence achieve max efficiency in all of them, leading to the best MPG performance in every day driving) is with EFI. The variables w/ a traditional distributor are just way too dependent for my tastes. I much prefer the independent interaction of EFI spark tables. (Ie, I can have 40* of advance at 3500 RPM and 15* @ 3600 RPM if I want to, same load). You just can't do that with a distributor and so, as a result, you end up having to make compromises.
Compromise = inefficiency