Remember, when you do a DOD Delete, you are replacing nearly the entire valve-train. THE entire if you replace the valves. All moving parts, and all valve seals. You will also be wanting to replace cam bearings with the new camshaft since it is likely they'll be worn.
The #2 bearing will probably be grooved by this time given the way the DOD cam is designed. It retains the VVT oil channel in the #2 cam journal for cost savings. You just grind one cam and use it whether the motor has VVT or not. So that will mean a bearing replacement (motor out). Anybody that puts a new cam onto that should be taken out back and sh.... er... scolded firmly. Your typical aftermarket non VVT cam is NOT going to have that channel ground into it.
At this point, I would say the valve train damage precludes your ability to do a compression test safely (at least my cautious standards say so). The cylinder walls would need to tell that story. If they're clean and the crosshatch is there, they are fine. If multiple cylinders had serious scratches, it would mean they need work.
So, I suspect you will be fine. A small cam with some matching springs will do the trick. You don't have to replace valves unless they're worn, and you'll see that in the guides and stems. These 821 (L92) heads are very good heads. At 152K I needed no machining when I did mine these past few months.
So in summary, I would not be averse to a rebuild and upgrade. It just depends on that abuse the motor has taken, how well it was maintained, and thus how much is left in the bottom end. It's a pretty sturdy motor...
'09 PSM G8 GT - OPG Intake, DOD-Delete w/ Stage 1C 218/229 .600 Lift 117.5LSA, Kooks 1 7/8 Mids, Solo Axle-Back w/ X-Pipe, SuperPro Bushings (Front and Rear). BMR Sway Bars (Red)
"If you want to criticize someone else's work, be sure that your own is in order first."