Wow Steve,IT does not look good to me !
Pitting is not normal for any camshaft lobe and is considered to be damage. It is usually caused by corrosion pitting and metal fatigue. Very common with low usage engines that are not driven much and sit a lot...
Your in it this far,I would pull the lifters to inspect and I bet ya they are dished.
I believe it is time for lifters,cam,and timing chain set.
Martin
