Thanks for all the replies. Once I fix a problem, I like to summarize the solution in case someone else runs in to a similar issue. As it turns out, there were several things I needed to address.
For starters, the oil pressure sender was bad causing erratic oil pressure gauge readings, so that part was replaced. I also replaced the switch that sends 12v to the fuel pump once the oil pressure builds up, and the related wire harness.
As far as the motor cutting out when hot, I determined the fuel pump was bad. I tested it on the bench for 5 secs and it spun but it didn't sound smooth. Luckily I had a used pump with very low hours so I swapped them. I installed a wrap insulation on the metal fuel line that runs from the electric fuel pump to the carb just to have some protection against vapor lock, though I probably wasn't having a vapor lock issue. This was cheap, easy and precautionary. I have a spare Weber carb but the old on if fine and not the cause of any problems but I may swap eventually with the spare, since that one has very low hours and it's easy work and no additional $ cost.
Next, ignition---At one point I was no longer getting spark. I followed the Thunderbolt IV flow chart to diagnose and saw I wasn't getting 12v at the white/red pin on the distributor module. It turns out the power comes from the purple wire off the + ignition coil. That wire was frayed on the coil end so I re-crimped with a new connector and shrink wrapped. Ignition came back to life. Since the motor was cutting out when it was hot, I suspected the fuel pump after I bench tested it considering it didn't sound smooth and solid. I'd bet that was the #1 culprit but the ignition coils are known to crap out when hot so that was #2. I bench tested the coil and it was reading withing spec for resistance on both the primary and secondary but I was uneasy with that because I wasn't testing the coil hot but rather at room temperature. Rather than take a chance with it, I bought a new Mercruiser coil, which cost me 3X more than an aftermarket, but now I have some peace of mind as far as potential coil problems.
So it all wound up with a frayed wire causing intermittent ignition failure, a very questionable fuel pump ( luckily I had a spare, I couldn't believe the cost of a new Mercruiser fuel pump), I replaced both components of the oil pressure sensor and sender and threw in a new coil just to know that part is new.
The result is when I turn the key, the motor starts instantly without even pumping the throttle to prime things up. It seems to be hitting nice on all cylinders and I am optimistic that my shakedown run on Friday will give me back some confidence. Aside from my own time,and I devoted quite a bit, the adventure ran me about $300 in total for parts. I could of saved a good chunk of that buying aftermarket part,s but I want to be able to enjoy boating and while there is a significant price difference, it well worth it to me to be boating more and playing marine mechanic less. I may eventually spring for a set of new ignition wires but for now I'll run with what I have since I'm not noticing any leaks or miss fires, etc.
Hope this summary helps some else out.