Some amount of oil flow to the lifters, maybe highly restricted, but some. I agree on the step drilled holes.
If my memory serves, there was a guy named Rapid Robert on the forum who has another book by Atherton showing that he pressurized an unassembled block with a garden hose flowing water through the galley to see how the distribution of each main was flowing. Apparently number 4 had very little water come out with the majority coming out the front.
When you kicked the rods out, was the journal blued or blackish in colour?