Here is an update.
First, this week I was certainly able to turn the rear wheels in neutral with them off the ground, rear axle on jack stands. I had the parking brake adjusted loose and I rotated the adjusting wheel back around 35 - 40 clicks to start. I then took the drums on and off the hubs several times to see if there was any drag against the pads while doing so. I did not have any problems with that. I eventually went back on the adusting wheels 20 - 25 clicks, reinserted the plugs in the backing plates and put the drums and wheels back on.
As of Thursday, I could rotate the rear wheels but it took some moderate muscle to do so. I can't just give them an easy whirl and see them spin free with inertia until they decide to halt.
A friend of mine who has bled brakes before came over Tuesday and we bled all four brakes. The fluid was very low in both MC chambers initially so I had to fill it first (1/4 in below the rim). To do the whole job took about a whole bottle of new fluid (I think it was a pint bottle but I forget the amount). We found air in the right front brake line only. We then topped off the MC. I could not really test the brakes with the engine on until today, as the car was tucked into the back of my garage 90 degrees to the doors and I had to get better dollies to reposition it so I could back it up.
Note - one lesson during the bleeding process was that the rubber gasket inside the MC cover likes to inflate, if that's the word, so that the chamber sections point down into the MC. Installing the cover with gasket pointing down like that, without pushing the rubber back up into the domed sections of the cover, ends up displacing fluid over the rim, making a mess and potentially screwing up the paint.
Today I fired up the car and backed into and out of the garage several times to test the brakes. I adjusted the proportioning valve to the middle of the range (5 out of 10 available turns) for now. The good news is that they work, but they grab close to the floor. Now, this could be a characteristic of power brakes, or a feel thing, given I have never driven an E-body with power brakes. My old 72 had manual drums and you really had to stand on them to slow down. The pedal did not move much.
Here, the pedal is pretty firm before starting the car (but not rock hard). It sits about 3-4 inches off the floor, although I will measure the exact distance this weekend. When I start the car, I am not sure if it repositions itself at all, but on putting my foot on the pedal, it goes down pretty easy and starts to grab around 1 -2 inches from the floor. I know the brakes work because when I got the car moving forward and stomped hard, the car stopped so hard that all the headliner hoops shot forward and one hit my head LOL. No headliner yet, obviously.
Going backwards the car would also stop, but I had to position the seat further forward and push the pedal down near to the floor. Pumping the pedal gave me a bit more grab, but I need to do this some more to get a better picture. I have a pretty steep driveway that drops 200 feet through the woods, so I would prefer to get that picture before backing very far past the garage door, as you might imagine.
I am wondering if there is an adjustment issue with the pedal position. I will be reviewing the manual. Tomorrow I will recheck the MC fluid level and look for leaks at the hose and line fittings all around.
I did read today that on a power brake car, the pedal position can be lower than it would be in a manual brake car. Mine sits a couple of inches below the clutch pedal.
Also, it does not feel all that different from the power brake position in my 2013 Challenger R/T (auto) - that also engages fairly low and is a very easy modulation. But I do not have to go nearly to the floor.