I finally got this engine out and torn down.
The quick answer to my initial question, is that all the bearings are ok. The mains have a lot of grooves and marks, but no excessive wear.
The rod bearings are just starting to wear through the first layer of metal.
I had 2 cam lobes wiped out, #1 exhaust and #2 Intake, and all the other lifter are worn slightly concave. I think that is what caused the drop off in performance.
The more serious issue is a crack in the #8 Cylinder wall. It's about an inch long on the outside bottom, under the piston travel.
I have had a little coolant get in the oil, off and on at least as far back as 1994. Just a little bit, most notable when it sat over the winter. I put some Moroso engine sealer in it, seemed to stop it mostly.
I took the freeze plugs out today, and wouldn't you know it; the jackass that R&R'ed the freeze plugs for me left the old one under the new one. The coolant passage is packed solid with gunk. I'm fairly certain this is the cause of the crack.
So stuff like this is the reason I can't stand to have anybody else work on my equipment.