Worth the effort?

Get it. Everything that matters is inside and made of steel. I don't think it got hot enough to affect the heads or block. The distributor cap isn't melted.

As for 500lb-ft, any decent 4" stroke crank with heads that will flow 250-ish cfm, 9.5-10:1 compression, and a decent cam should get you there. The stock heads probably could be ported to do it or any of the aftermarket aluminum ones would. The stroker should rev just fine to 6500 depending on heads and cam, and at that power level shouldn't need any trick oiling mods IMO.