So some of this is educated guess, some WAG, some deduction, I haven't seen what the curve is on a Sniper, but did some reading and applied it to some others I have seen, so no doubt I think we can get you there, but take the specifics with a grain of salt
So, first, if you indeed are at full advance when you are cruising and it doesn't fall out at all when accelerating (assuming you are watching it) AND that is why it's pinging, then I would just drop total and see what happens. You are right on the edge, so this is tweaking, not a problem with the vehicle, and certainly not a cam timing/DCR issue.
Second, I didn't assume you were there, I assumed this was happening when you were not at full advance or it was in the period of time you were running on cruise advance (vacuum like) just before it fell out. So in that case, lowing initial changes the whole curve right up until total. You can draw two lines one from 10 - 36 and another from 16 to 36 and see what I mean, the whole curve is lower until the end.
Third, I would not say heat WILL increase if you drop to 12. 12 is still plenty of initial for a mild cam. FWIW, a similar cam to that in 1969 in a CJ would be running 6 degrees BTDC and have a much slower curve. I would try it and see, remember, this thing won't vapor lock now
Fourth, I would expect that if the Sniper has a vacuum advance that kicks in during cruise, it would indeed be over 40. In fact, it seems to me that setting the reference angle at 45 degrees as I read in their instructions, would tell me that's the max it puts out. However, I wonder if there is a field there somewhere that allows or disallows that from happening.
Finally, how does the Sniper pick the a/f ratio? I have been seeing more people look for 14.5:1 stoich, and with the wide range of fuels out there, it's likely safer to run a little richer. In fact, I doubt there is any fuel in any commercial tank that has a fuel with those characteristics anymore. Do you have the opportunity to adjust? Slightly richer, even ever so slightly, will help, especially if targeted to a time when it's just a little too lean
Again, if I understand the problem, you got a little bit of controllable pinging, the easiest way, like Brent said way back, pull a couple degrees out and evaluate