Actually, my observations are there are several things that can be noted. While the engine is not as clean as I would want to see, it is not horrible however from my experiences it does appear this engine does have some blow-by.
The camshaft appears to have quite a bit of wear, -and if this engine was rebuilt in the past, it would appear the camshaft was not reground. (On a side-note, this is an earlier engine by the looking at the 5-main camshaft)
In picture #1, it appears that #2 connecting rod does not have any shims whereas #1 & #3 do, albeit they aren't very thick. The timing gear appears to be a laminated type that has dried, and the crankshaft gear appears to have rust forming which will cause premature wear on the cam gear.
My overall take is, check clearances and adjust to spec if possible. Replace the cam gear and reassemble.