I'm not sure if you resolved all those motor issues, but just in case...
CB200 has taller pistons, longer conrods and a taller barrel. The head could be used if it's macnoine somewhat. but the rest is not much use on a 175.
machining the head creates more slack in the cam chain on both sides, so when the slack is adjusted out, the cam actually is rotated backwards slightly. That creates retarded cam timings which are not always bad. We adjust cam timing to make the motor do what we want and in general slightly retarding cam timing moves peak power up the rev range and advancing cam timing moves it down. So a slightly advanced timed cam should make a little more midrange and have a little less at the top end. a slightly retarded cam makes less in teh middle and more at the top - in theory.
.020" (20 thou) off will slightly raise compression and improve power throughout the range. We take a lot more than that off a race 175.
If you ever get tempted to fit a megacycle cam go for the mildest - it works best on those motors and we have the dyno tests to prove it.