"I did discover that cam was in great shape, but cam bearings are horrible, gouges, nicks, you name it"

Parts have really gotten expensive on those engines! But if you only need stock cam bearings, well they are still relatively cheap ($35-$45)---but installation is tricky because of the odd tool (longer than a small block).

My plight is very similar to yours , one of my spare motors was a fresher rebuild but had been sitting a long time (20 years). This left me replacing rings and cleaning & unsticking stuff. I was able to successfully powerwash all the water passages of rust and crud out with the engine head off, casting plugs out, and engine on a stand in driveway. I thus avoided a trip to hot-tank. Surprised me at how well it worked!

Since you may only be facing a RE-Freshing versus a re-build, may I offer some tips based on what I have just gone thru?
#1-take hundreds of organized detailed pictures. The littlest detail will really help latter.
#2-- double-check if your pistons are stock cast alloy iron, or newer replacement aluminum (makes a difference in cylinder bores)
#3---all the lower end parts need to be marked as per their relation to the cam AND keep all nuts, bolts , tappets, push rods, EVERYTHING labeled and stored to put them back in the exact position of the places they were removed from. (white typewriter correction fluid works great, stamping is OK but hard to do, and last resort is permanent marker cause oils will wash it away --but it is good for bearings ). Screws and bolts under and around the timing cover are weird sizes and positions so note them well or just put them right back where they belong.
#4---watch those little dippers on the rods and shape of oil pan. Most machine shops will not re-set them and will give you the old "I didn't disturb them so I just put them back on".
They are as fragile as glass and can get easily distorted when you move the rods (and pan) around in your shop over time.
#5--- Zip-lock freezer and sandwich baggies are your best friends when it comes to storing parts. Label the bags well, use lots of them.
#6---I would re-think milling the heads any. Your 216 should really perk up with some clean parts (and maybe a better exhaust). Milling heads and recessing valves is usually not a good pay-back unless the head was warped real bad to begin with. Hardened valve seats may not be necessary for you (depends on your payloads and how fresh your valves are now) but they do have a good pay-back when (if) you sell the truck (buyers seem to like them).

The cost of new gasket kits,seals, some new cam bearings,etc etc will shock you enough to consider refreshing a 216 to near stock.
{Also: Kohnke Rebabbitting Service 60615 330th Avenue Clare, IA 50524 .... I think has a good reputation, lots of experience, and willing to talk about your bearings. Previously mentioned Paul's Rod And Bearings is good too!}

Oh, #7 --- I've been finding out it's a hell of a lot easier to take those engines apart than to put them back together!