Yes the MSII sends it signal, and this signal contains the timing information. There is a slight processing delay, which can be nulled out using the trim adjustment in the MS and a timing light. Yes the dwell is controlled by the EDIS, which is fine, because it is optimized for the EDIS coils.
The problem is that when you use the distrbutor with MSII or MSnS_E, it limits your timing adjustment range. With a direct fire ignition with crank trigger (EDIS), you have complete control over timing. You can adjust the timing in ways that are not possible using a distributor.