Re: 5.5hp Johonson Seahorse 1961 - Rated Compression
You really need to post your own thread so you can get some good help.
To answer your question, yes, you probably wasted your time on the head gasket. But it's one less thing to worry about.

Second, you'd have a better chance of winning the lottery than your motor having exactly equal compression that low (58 is WAY low on that motor). Don't worry about the compression. Find out what is wrong with your motor. They don't suddenly stop running at wide open throttle very often because of compression unless a dirt dauber nest under the cowl broke loose and the sand cut the rings out.
Here's what I'd do:
Do a real spark test. (I'm guessing you did your initial test without an actual spark tester since that's what I once did and it drove me nuts figuring out I had spark problems). Use a $6 spark tester from autozone.
If it's getting good spark, it's not getting enough fuel or the spark isn't timed correctly. I doubt that the timing is the problem unless you hit a stump and sheared the flywheel key.
Next, clean the carbs. It's not that hard. Totally simple, actually. And that's coming from someone that has nightmares about being forced to rebuild a carburetor from a car!

If the problem persists, check to see if your fuel pump working by turning it over with the hose coming from the pump off the carb. Use a friend to turn the motor over and see if it pulses fuel out the hose while you catch it in a cup. Actually, try pumping the primer bulb and getting it restarted after you replace your head gasket with a NEW one. If it starts to die on you again, have the primer bulb in your hand and pump it and see if the motor picks back up. If so, it's probably your fuel pump. If the bulb is flat, your tank vent is clogged or closed.
Retorque the head bolts in the proper pattern with a torque wrench or your motor will get ruined. You might check for head flatness before reinstalling by putting it on a pane of glass and looking for gaps. If so, rub it in a figure 8 pattern on a pane of glass with 400 grit sandpaper on the glass.
I'll bet you can fix it.
Good luck,
JBJ