Cam looks like its toast...whaddya think??

I agree, the cam is just a few miles from the lobes starting to go flat. In the past when I changed cams and lifters, I always put in new timing components because to me, it was cheap insurance angain any valve train problems. If you machine shop is good, they can change to cam bearings without have the engine totally apart. They just need to make sure all of the old bearing material makes it's way out. JMO