Drying does not increase the amount of heat from a given log, it has just driven off the moisture and made it lighter but releases about the same energy. If the piece of wood had not been dried some of its energy would be used to volatilise the moisture first, so the heat is not available to the room but goes up the chimney as steam.
The more significant effect is than in turning the moisture to steam the fire gets cooler and burns less completely, hence more pollution.
The bit about burning too quickly is rather spurious because in burning quickly it gives out heat quicker, if it's giving out more heat than required it's normal to turn down the air control to compensate.
@Stere the late Tom Reed, a combustion chemist from america, produced similar results to that graph, I have tried to explain the reasons in the past. Firstly the flame on a wood fire is largely not premixed like petrol:air in a saw or gas:air in a gas burner, it is diffuse, the hot wood gases meet incoming air and diffuse into each other at the flame:air interface. The oxygen in the air reacts differentially to strip hydrogen from the gases and these carbon bearing remains glow yellow in the flame. If the conditions are good the hot carbon meets fresh air and burns out, if not it exits as soot.
A premixed fuel to air has the gases and air intimate and the burn is simultaneous so no carbon left to glow and the flame is blue, this is how a gasifier burns a flame.
We all know that if you throw petrol on a fire it doesn't burn blue and the carbon cannot burn out because the air is not able to supply enough oxygen, so we get black sooty smoke aka particulates.
When air dry wood burns the heat from the fire raises the surface temperature of the new log, firstly to 100C as any surface moisture is driven off and then the wood pyrolyses evolving the woodgas and leaving char on the surface, the woodgas burns higher in the fire and oxygen combines with the char, burning it away and the next layer in repeats the process.
You will see the moisture in the wood controls how the wood burns away. The less moisture the quicker the log can pyrolyse and burn because volatilising the moisture takes some energy which has to be supplied from the burning surface area
Pyrolysis is slightly exothermic above 330C and below 440C so if there is little or no moisture present to rob heat a chain reaction can occur in the wood, the wood can quickly pyrolyse throughout with no extra energy from outside once the temperature is high enough to initiate pyrolysis. The wood then evolves more woodgas that oxygen can burn and like the petrol analogy soot is given off.