Yeah, I think this is over done! He did what he could do with what he had probably, low buck. He's driving it, and enjoying it, let him be. I'm sure he's not a talented as many of you!
This type of pick up 3/8 off the bottom of the pan, never had an issue. Put your straw in your drink and hold it 1/8 off the bottom, then move it up to 3/8. big difference,
I would say that cam is a little radical, it sounds like you should use a cam in the 230-to-240-degree duration at .050. The cam you picked out will need a 3000 thousand + converter headers. I would scale it back so you can enjoy the car. Some aftermarket heads would also help out the power numbers.
I would go with a full rebuild, Machine the block, bore the cylinders. You can use 6 pack pistons, to get the compression where you need it. The cam all depends on what you are using the car for, (driving style).