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The 90-93 W124 diesels have a 2.5L 5-cylinder and get better MPG, they just have less power. 32mpg for one of those is normal on the freeway. The 1987's with the 6-cylinder don't often break 30mpg. On both of mine I usually get 22-25 in town (lead foot) and 26-30 on the freeway.
I might back it off to 13.5 or 14.0 ATDC to reduce the high-RPM smoke. However, since I don't often rev it up that high anyway, I wouldn't bother going back to 15. It doesn't smoke any more than before at ligher load and/or under 3000-3500rpm. XN6guy's idea was right on, 14 could almost be considered factory spec... :p
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