Fixed
FIXED! ...well, maybe.
Discussed it with a GOOD NL Tech in MA. (there are less good NL techs elsewhere as I discovered...

) Turned out the problem has nothing at all to do with the engine - it was an issue with the voltage regulator which had caused the generator to bog down. Basically, the regulator shunted the generator coils so as to essentially provide a huge load for the engine - far beyond what it is designed to handle. So the engine went to full fuel to provide enough power but there was insufficient HP to spin to normal RPM so it ended up with huge quantities of fuel for the rPM.
This morning the Genny was doing as it has been doing since "failure" - running at about 1/2 speed and copious quantities of black smoke. At his very first suggestion (Joe in the MA NL branch) I turned off the voltage regulator breaker which "turns off" the generator section. The engine then started/ran perfectly. I turned the breaker back on and the engine continued to run normally and all generator power was normal. So obviously, something went awry internally in the regulator section during the night at anchor when the Genny went south but resetting the breaker this morning "cured" it.
Joe pointed out that (as we all know) electronics don't usually fix themselves. However, he said he has seen that happen on occasion and recommended the usual - break/clean/remake the internal connections, which I did, also reseating the 5 plug-in relays. So it may be "fixed" or it may not. Since it's working properly now, the only thing we can do is watch it and, if it does it again, replace the regulator board. It could be a electronic component issue that occurs when the jenny is very warm. So the only thing to do is see if it does it again.
But at least I know what the issue is and that it has nothing to do with the engine...
For NL questions - electrical or mechanical - call Joe in MA at 978 258 7412. They also sent me a PDF of the workshop manual via email. You can't beat that kind of support!