Greg,
The pitting on your bearing surface could be caused by antifreeze contaminating your oil, head gasket leaking or cracked head? I'd take a look at the thrust bearing and see if its got a piece missing, maybe that is the source of the piece of metal you found. If you find excess end play in the crankshaft that may be the bottom line to your oil leaks. If it does have excess end play no matter what type seals you put in its still going to leak and be a problem. As to if the pitting is normal wear, I would say its not normal in my opinion. From the looks of the sludge in your motor its been a long time since its been opened up. If you plan on using your truck on the road I'd consider pulling it apart and going thru it. If you just want it to run and move around while you do other things to the truck, then just do a minimal repair on the motor.
Good Luck
Don