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Your mom has first shot at salvage. Your only and best option for getting a good price on the engine if for your mom to buy the car from the insurance. Then pull the engine and sell the rest to a wrecking yard. No need to part out the car or hold onto it for more than a couple days.

Just out of curiousity I did a google search. Looks like this happens, not allot, but it happens. Sounds like it causes the valve to hang open and hit the piston (among other bad things). This is one thread, more threads about this are out there...

Someone needs a hug. lol free hugs from fat naked guy - YouTube

Yes.

That oil pressure is more than enough for a hot idle.

This is an important question. If the cam is only designed for making power to 5,800, running it to 6,800 will most likely return a slower ET.

You asked for opinions….. The hemi and suspension mods won't make the car that much safer. A huge part of safety comes from a responsible driver. The mods will make it a better driver. I wouldn't bother with the expense of an AlterKation kit unless you are also upgrading your wheels...