For a return system, you MUST use a return style regulator. The standard Holley thing is for dead head use only. Plenty of studied have identified dead head style regulation as "sketchy" since the very nature of the regulator switching more/less/more/less surges fuel at the carbs and can add to fuel foaming in the bowls. For a normal street type car, yea - esoteric type issues.
With a return system, the regulator sits after the fuel log or carb feed(s) and returns unused fuel to the tank. Line pressure at the carb is set by the amount of return fuel. With my AFT 250, the line up is a -8AN but the return is -10AN to allow for regulation of that volume of fuel. In theory, the carb(s) have access to the full volume capacity of the pump, so if pressure reading are dropping it means that the carb(s) and the engine demand are starting to outrun the pump and you need a bigger pump. I run all the hot rods/race cars with a return system.