Well if you were going to follow the advice of some people around here, or your "anal" mechanic and pull the engine to inspect a camshaft.... You should check everything. Heck why not just buy a new crate motor with a warranty. Make sure you replace the starter to... if bond-o was working on it he will charge you to pull the engine for that if it goes bad. Lol
In all seriousness, if your mechanic doesn't offer to take the carb & intake off of it while it is in the boat to get a better look at it you should find a different mechanic. The oil filter set up on that type engine is very good, the oil pumps are near bullet proof and failures are nearly non existent. So these guys saying you are pumping metal through your engine is, baloney.
Flat cams in small block Chevy's are VERY common, ask any cam company. Most common in high mileage vehicles with poor oil change history. Hundreds of thousands of camshafts have been changed on engines that don't get torn down. It would be fine if that's all that is wrong with it. Based on the cleanliness of your heads i would bet that your cam went flat because the valves were set too tight when the heads were changed. I have on two occasions seen a spun cam bearing because of increased load by the over tight lifters and heavy springs. You would be wise to check that. It could also be a reason you are seeing poor oil delivery to the top end.
Make sure to get work agreement in writing that has specific dollar amount's on it and dont ever sign a generic looking work order that says something like "approval to fix engine". If they want a deposit and you want to really protect yourself, pay with a credit card that you use often.
Sorry if you already knew this part. I dont mean to make you sound like an idiot or anything.
Best of luck, keep us posted