Cool trick. So there's some correlation between exhaust temp decrease and power. Did he try different size tubing to see if that made a difference? Would be fun to have the facilities and resources to do testing to better understand.
No, he never bothered to go that far. The theory was that at the point were the wax pencil stopped melting is where the scavenging effect stopped working. After that point the fumes are just tumbling down the rest of the exhaust and not pulling the next exhaust pulse down the header pipes. Him and his buddies did this a lot back in day, and the cars they did this with included '65 Corvette, '69 and '73 Z/28's, '72 Cuda, '70 Mach 1, and others that I can't remember. These were all cars that were driven daily and raced on the weekends in full street trim.
As far as diameter goes, he said 1 5/8" primary tube headers are great for street motors and quite a few "race" motors even. He found 1 3/4" to slightly lose power on the street, and around that 500 hp mark is about when race motors start to benefit from them. I remember him saying once they never ran bigger than 2 1/2" diameter for exhaust, they never had cars that seemed to benefit from a bigger diameter.
I should also note my dad hung with guys that would build there own tuned pipes for their snowmobiles, two of the brothers built and campaigned a highly competitive alcohol powered big block 4x4 pulling truck (Tibb's Toy), countless drag cars, some race sleds, and even a race boat. To this day they all have a "toy" car, and one of them is putting EFI on his boat that is equipped with twin 540's putting out 800 hp each. I am blessed to know this group of a dozen or so guys personally, and when any of them talks about anything, I know to shut the hell up and listen! These guys know what they speak of and I get to learn from any and all of them. And they have kick ass stories from "back in the day"!!
Thanks for letting me brag! Carry on!