It reduces 12v down to 6v for the stock coil config to work. You can test it as outlined in the shop manual.
I've removed my ballast resistor after changing to electronic ignition that uses 12v for coils...no need to reduce to 6v anymore.
Poor running above idle can be many things...though you claim everything else good. Spark plugs/cables/coils/points/timing/AutoAdvance/carb balance /needle/jets/air leaks/filter.
So many potential issues to run down.