Terry,
I'd like to add one more item to your carb list:
5) Bigger isn't usually better.

I think I qualify as an expert in what
not to do to a '74 CR125M, so maybe that will work for now. Everything below pertains to the original 125cc motor, not the 175cc unit that's in it now.
I'd suggest at least a 280 main jet, and the pilot jet that's in there now (whatever that is) to start. Perhaps someone else with actual 34mm Mikuni jetting info can get you closer than that, as I'm working from a conversion chart that may or may not be accurate. If your carb has a lot of hours on it, I'd replace the needle jet if it's still available, otherwise you may find yourself leaning out the main and pilot jets excessively while the motor still runs rich at 1/8 to 3/4 throttle (see #4 in your list). I'd also replace the L crank seal (behind the ignition) just to be safe, unless it's brand new.
It's possible to limit the slide travel to make your carb work pretty much like a smaller one, and allow you to use WOT below the powerband without the motor going to sleep.
Honda originally used a 28mm CR125M carb, a 29mm in the optional '74 hop-up kit, and a 30mm from '76 to '78. They did put a 34mm Mikuni on the MT125R road racer, with its fairly radical porting and intake timing; I think it may have come with a 300 main jet, but I couldn't find much else.
I put a 36mm Keihin on my CR, removed the intake bridge, and trimmed the rear piston skirt, resulting in zero low end, reduced midrange, about the same top end, and terrible throttle response and plug fouling as bonuses. I wouldn't recommend doing any of these things to yours. I wish I'd kept the 28mm.
Ray