Who advised such things?
I'm an advocate of the NECJ needle, but I wouldn't start with a 38 pilot or a 165 main on a stock engine. Too much of a jump from where you are with the stock needle. The setup you listed is considerably leaner across the board so you'll definitely see an improvement in response and fuel economy (assuming you're too rich now, and that the settings not too lean).
I'd personally start more around a 40/42 pilto, NECJ#3, and 172/175 main. This will give you a base to start from that is safe.
Recently Dave at TSP set up a 2013 on the Dyno and said he had it at 40 NECJ#3 165, but he'd also milled the head, reduced the squish, reshaped the band, and adjusted the compression ratio. Effectively improved efficiency so no surprise it can get away with a leaner setup.