Pieces of steel in cylinder??

And what would that be?
Just in case..... You had better check the the valve train to see if the valve retainers were hitting the tops of the valve guides. Any bent pushrods?

Was this extreme cam bearing wear only only a couple of the cam bearings, like 2 and 4, or on all of them?

Put them in order largest to smallest (front to back) and see if the wear is more on one end than the other. Probably not, but just chekcin'.....