Sound like you want to lean the low speed needle a little bit 1/8 turn at a time to improve your response. To help idle, as you already do your best so it does not die, you may want to open the high speed needle a bit to give it a bit more fuel to improve your idle.
I think what you show is the flywheel collet which does have the gap. I suspect, your flywheel maybe loose, but I could be wrong. It could still be your OWB. It will be better to take out the engine and check.