Thanks for all the replies. I'm not really sure what I want to do. I don't mind rebuilding, but I don't like doing unnecessary work, nor do I like paying for work (parts) that doesn't need to be done. The oil pressure is good. About 55 once warmed up, and running at 2500 rpms. At idle it's about 35.
Of course I don't know if it's some kind of blockage in the pickup, wrong oil type (non zppd?), or exactly what. Again, I don't like replacing things that work fine, so I wouldn't be planning on changing the cam unless it needs it. From what I understand the lifters and push rods become matched after running together and if I replace the lifters I'll definitely need to replace the rods. I'm not sure if I need to replace the rocker arms, but perhaps.
I don't have a valve spring compressor and just don't have an interest in messing with valve guides, etc. I'd let a machine shop do a valve job, and anything else to the head that it needs.
I just don't see this engine as having a lot of wear (unsure of the actual hours, the previous owner suggested 400-500). It's all time and money. I plan on doing several other minor projects to the boat this winter and a complete rebuild wasn't really in the cards.
Again, thanks for all the thoughts. I'm still not sure if I really want to pull the whole engine or just focus on the top end for now. I guess the other thought is that if I ever legitimately need to work on the bottom end, I can pull the engine, do that work, and not worry about the top end.