its more a case of lapping the crankshaft and the "socket" of the flywheel. The idea being to make certain the flywheel seats itself well on the taper of the crank.
There is no performance to be gained, but if you want a solid motor to last when you rebuild, it is good practice to do it. Could prevent a headache later
Lapping helps mill the flaws out of the mounting surface of the crank and flywheel. The flywheel is held in position by a press fit design. The key is only designed to line the flywheel in the correct position on the crank. It's not designed to secure the flywheel from moving on the crank.