My take on your "engine rebuild or replacement question". If your lifter tick goes away after initial startup, it's a sticking lifter and not a worn camshaft/lifter. If your happy with the engine performance, but it's leaky, then pull the engine and replace oil pan/rear main seal, valve cover, intake and timing cover gaskets, put some fresh paint on it and start driving it. You could replace the camshaft/lifters, but make sure you break in the cam correctly. Rebuilding/replacing an otherwise good engine seems like a waste of money to me. The worst thing you can do to any engine is not drive it, you end up having the problems you're experiencing.