Pulled the Mess that was my Timing Chain....

Well there are 2 things to consider with the block wear behind the cam sprocket:
1) The front cam bearing is set 3/16" behind the front surface of the block; this is to provide some oil flow space from the front bearing to the little circular oil feed to lube the back of the sprocket. This space is considerably reduced now so how well the cam sprocket will be lubed is a question.
2) The ONLY cam alignment mechanism for the position of the cam is the place where it is considerably worn. It will now ride too far back in the block. This will effect the lifter contact point on the cam, and the distributor gear mesh in the cam, and, perhps most importantly, the ol pump gear mesh with the cam. Any of these 3 misalignments can be a significant problem for you.

Have you measured the depth of this wear? It would be easy to measure from the block face to the back of the groove and would be good to know.