Honestly there is nothing the matter with the cam you have... if anything it probably needs more valve spring, but it will make power just fine.

Double check everything, including the rocker to spring clearance, and rocker pattern.

On the dyno you looked at o2, so fuel starvation is out because it would show up going lean. You double checked the timing (although the balancer could be way off), so sort of ruled that out. It could have weak springs on it, but even if they are weak, I would have expected it to run clean a lot higher RPM then it did (but you'll double check that now).

Honestly though... That being said, if the motor sounded like it ran good (no ticking or anything crazy), I wouldn't be surprised if the coil was junk (new or not).