Regarding if modified intakes more suited to the Avon would have made the "City of Hobart" have better performances than a ATAR powered IIIE, it is perfectly possible. But then one have to keep in mind all the modifications to the airframe that would imply, big redesign of the whole air intake and air duct (expensive... the Australian evaluation called for an alternative engine, not an alternative airframe) , and if these intakes are increased in size, bigger frontal area which could have cancelled the benefit.
Of note, the J-79 as a mass flow even bigger than the Avon, and the intakes are indeed enlarged on the Kfir compared to ATAR powered MIIIs. But I believe the even bigger thrust made if worthy (though the integration due to heat was quite some work, with rear fuselage being cooled via multiples air inlets AND being isolated on the inside from the engine by a titanium "blanket", otherwise the J-79 would burn the rear fuselage).