I guess I am the only one here who uses a light? I have set timing "by ear" in a pinch, but I don't like to make a rule of it. Yes, you can get it set pretty well. On a low compression V8 you can get away with it, but on a higher performance engine (high compression, forced induction, etc), I don't think relying on the seat of the pants method is smart.
On my stock 75 440, I set the timing at 11 degrees BTDC. The 75 spec calls for 8 BTDC, and it runs like a dog. The 74 spec calls for 10 BTDC, where it runs better, but 12-12.5 BTDC is good for a performance application (I would run that in a car). I knocked mine back to 11 because I am hauling and using cheap gas, and it also smoothed out the cruise speed performance. This illustrates that the factory recommended setting does not always have best performance/drivability in mind.
A timing light will also tell you if your vac and centrifugal advance curves are working optimally. Get a light (and a degree marker for your engine!), they are well worth the few dollars.
Also, pay attention to the factory degree indicating tabs. Some have holes in them that are set at TDC (0 degrees). If you set your timing light to this hole, your engine will run like crap. Scrape the rust and grease off the tabs so you can read the proper degree markings! Speaking from experience on that one!
william