Check compression. Should have 138 psi.
It isn't technically a choke, it is an enrichment valve. When pulled, it opens a passage to allow extra fuel in. You are likely right that when missing, it was sucking air, but that was in addition to the extra fuel it would suck from the 'choke' being on. If the piece that is pulled by the cable is shoved down in the hole and held tight, the choke should be off.
The stock idle jetting already tends to be rich at idle. I suggest dropping the slow jet from the stock 52 to a 45.