110lbs is pretty good compression in these engines. That #3 is a few pounds under the rest would indicate a possible ring or valve issue, but it's not severe. It's hard to gauge a drop off in power while on the internet, so opinions may vary. Do you have someone close by that also has a Willys? ...and would let you drive it?
I've got a tired engine showing compression in the high 70s on all four cylinders. It is able to keep up with most fresh rebuilds on the trails of Colorado. I will say, long steady inclines were a killer with mine until the timing was adjusted correctly. Are you pretty sure your timing is dialed in and points adjusted?
Another thought...one other killer was a faulty condenser in the distributor, but for me, this caused a soft back fire under load, along with a lack of power, so it may not be your issue.
Tim