Your GPS observed average speed is a rough approximation of TAS (i.e., no conversion required) and if you observed 136 knots IAS, then the airspeed system does seem to be roughly in the ballpark, i.e., a TAS of 175 MPH, standard atmoshpere requires a CAS of about 136 Knots.
Unfortunately, without MAP, it's not possible to determine the amount of power the engine is producing. If you have access to the Lycoming curve and the engine is configuration for which data is available, you can somewhat "reverse engineer" a ballpark number that may help, based on the limited data you have available.
The purpose of the WOT throttle @ 8K' test is simply to WAG 70-75%--a known point. If engine red line is 2700 and the prop is capable of turning 2750, it's likely pitched about right for cruise; but it's difficult to determine unless you have the prop data. If it's not on the sticker on the hub or in the logs, then a S/N for the prop and a call to Craig may help sort things out.
Unfortunately, without proper flight test you just don't know. What you're seeing may be reasonable performance based on engine configuration/rigging and prop.
If you have any questions, don't hesitate to drop a line or PM.
Best of Luck,
Vac
P.S. Sid--I had to do a quick edit when I saw the new data pop up! I think you are correct, and it's likely the engine is producing about 50-60% power.