Unfortunately, a week after the above picture, the engine started losing power. I ripped the valley tray off only to be greeted with some wiped cam lobes and ground up lifters.
After pulling the engine apart, I was relieved to find the crank was fine and all the bearings were perfect. Whew!
The block has been thoroughly cleaned and cylinders rehoned. I reinstalled the crank with new bearings last night.
I made the decision to go with a hydraulic roller cam after reading about others having the same problem with the current crop of flat tappet cams. Parts started to arrive last week and I was really impressed with the way Howards package the roller lifters.