Yes, a setting like 100k should increase the time that the heater is on and, therefore increase the temperature.
The circuit basically works as follows...
Capacitor C2 is charged through the two pots and R3 (which is in series with the external pot.) The smaller the values of these two pots, the quicker the capacitor charges. Until the capacitor's voltage is greater than the DIAC's breakover voltage the TRIAC is off. When the TRIAC is off the heater is essentially off as very little current is flowing through it.
When the voltage across the capacitor finally (if ever) reaches the DIAC's breakover voltage the TRIAC is triggered. Once this happens there is a low impedance path for current to flow--through the heater and the TRIAC back to neutral. The voltage across the TRIAC drops and the remaining voltage is dropped across the heating element.
The TRIAC will turn off when the current through it drops below a certain value. This happens twice every cycle when the voltage crosses 0V.
You can see all of this in the screenshots of the waveforms that I attached.
So lower values for the two pots will cause the TRIAC to be triggered sooner, essentially.
You don't really need to dynamically change component values to understand how the circuit works. Just choose some settings, run the simulator, make note of the behavior, repeat.