Rusty Camshafts

[MariosBMW2024]

Hey folks, a couple of questions. While I was replacing the valve cover gasket as well as the Valve cover I noticed there was rust on the camshaft. Should I be worried? (There are pics to show the rust) I was told to replace the lifters and the camshaft and also I should be concerned with the bearings due to how the engine looks. Also, I'm replacing my plastic valve cover with an aluminum valve cover and I was told that was a bad decision. The aluminum pan tends to warp overtime and it'll start to leak. Has anyone dealt with that issue before? BTW, I'm not the one who put her in this condition. I'm the guy who just recently purchased her and trying to revive her back to working condition.