Yes, it can. But... if the engine is fresh... then the rings aren't beaded, and the compression may read low too.
BUT... if you bring it closer to the tight end of spec... you will pick up 10 psi. Regardless... 110 seems low to me. The 951 engine should be closer to 135 psi.
If you got the engine from a rebuild shop... they either didn't really check it, and just used a thick base gasket for safety... or they set it high to assure the engine doesn't eat itself.
As far as the last question... it will cost you A LOT more to have the head properly cut, and take time. You can just slap in a thinner base gasket, and be done in an hour. You can't just shave the head on a Rotax. They have to be properly re-cut. Group-K is one of the only people who do it right.
Don't forget... you will need a new head gasket also.