Could you explain this in a little more detail.I am totally confused by this.
I have been doing tune-up work for 50+years and recieved training at GM training center . Just not sure what you mean.

mike
OK a coil is a high ratio step up transformer 12volts to 20,000volts +. Transformers work as the magnetic fields collapse and develop. AC in AC out under normal transformer function. I.e. Radios and other electronic devices.
But wait the Jeep is 12v DC or a constant current flow in one direction. Turn the power on. That will give a pulse of current - once until you turn the power off and the magnetic field collapses. One more pulse or current flow. But the current must flow long enough to "saturate" the coils magnetic field to be strong enough. That's where dwell comes from.
So the points are turning the power to the coil on and off at the proper time causing pulses of current flow - spark!
Now 2 things are important:
1. How long the current flows - adjusted by the gap or dwell
2. When the spark occurs - adjusted by rotating the distributor
Note: set the dwell first and then the timing
Others can explain it better but this will give you a general idea. I am not an electrical design engineer but a mechanical engineer working as an electrical certified quality engineer (ASQ) in a Tractor electronics manufacturing plant. Been setting points since 1964.
Best advice is get a HEI distributor and run one power wire. My stock system would drown out in deep water even after lots of silicon spray and silicon sealer. The stock vacuum advance had a slot that could be sealed without interfering with the arm letting water in.
There many 1975+ 258s in junk yard that can donate the stock electronic ignition system too. You only need the distributor and module The coil is the same stock one.