Welp, I put everything back together this weekend and splurged on some 12" wheels.  I haven't had a chance to go fishing so I haven't towed the boat, but I think there will be marked improvement.  I'll definitely post the results of my first tow whenever I get lucky enough to go fishing!  Also need to post a picture.

Summary of changes:

• Removed two of the three spring assemblies
  
• Replaced 8" wheels with 12" wheels
  

Still need to buy some bags of sand to help balance the boat for towing and planing.

Towed the boat to the lake yesterday and I must say, there is a marked improvement with the modified trailer.  It was like night and day.  The motor still jumped a bit on the truly outrageous potholes so I think I will look into add a strap around the lower unit to help secure the motor to the boat.

I noticed a lot of people tow their boats with the motor locked in the upright position.  Is this considered a better practice then leaving it down in the running position?  To me it seems the upright position would cause more stress on the transom than the down (i.e. running) position.

Trailer with it up with a transom saver, if its down every time you bounce your motor bounces an would come down putting for stress on the transom.