Thanks all for your replies.
I still have two NIB K&B 3.5 with the butterfly exhaust throttle that I want to use in my new project. Because the front housing is rotated 90 degrees, it is not easy to mount a carb. Back in the 80's, it was popular to replace the can muffler with an exhaust throttle and tuned pipe.
Back then, I had actually swapped the front end with a car enginer (8801), turned the case 180 degree and ended up with a pretty strong running engine.
The only problem with exhaust throttle, in my opinion, is that it is not fail-safe. By that I mean if the bolts vibrate loose, you will end up with a screaming engine and have no way to shut it down until the boat flip or run out of fuel.....ask me how I know ;-)
Regards,
Kez