Tim,
I agree with you that a flat squish band will make the motor vibrate more than a angled band, but it will make more power too. The motor will not clean up as much as with the angled band because you need to run a bit richer.
I also agree that increasing the squish clearance may not reduce detonation, actually it can make it worse.
The best thing to do is run a minimum squish clearance .006" to .008" and reduce the head volume until the motor just starts to detonate and then open it back up slightly. I run very small bowls, flat squish bands, and tight clearances. You HAVE to run rich, but it makes a ton of power.
Good luck,
Chris Attebery
NAMBA 786