Here my concluding analysis (just confirming what was said already in the OP):
ITM LongStrangle (aka Guts) costs $2.62
OTM LongStrangle costs $0.62
Though both give the same GrossResult, the effective NetResult of the OTM LongStrangle is at least 4 times better due to the 4+ times better CostBase.
The proof is simple: 2.62 / 0.62 = 4.2258 times better (in this example with the said parameters of S, DTE, K, Premium (or IV) etc).
Said differently: when the same amount is invested in these 2 constructs then the result in case of a win for OTM LongStrangle will be 4.2258 times better than for ITM LongStrangle. Ie. a leverage factor of 4.2258.
For example when (hypothetically) $2.62 is invested in both, then the PnL for Sx=16 at expiration is about 18.50 vs 4.38 --> 18.50 / 4.38 = 4.22 times better result. That's the result using fractional Qty to invest the same amount of $2.62 :
View attachment 331983
When are you going to put all your FairMaths™ to the test and trade it with real money?