It's hard to tell from the pictures but it looks like it was spraying outside the bowl some but I could be wrong. I'm also not so sure you have a non i/c engine. I see 7mm injectors, intercooled style injector lines, intercooled deliver valves, and 5 hole spray pattern. It could still be a non i/c engine with the stuff swapped onto it but that seems like a lot of work to me.
Did this cause the blow by?
I wouldn't waste money on a cam. That's just my opinion, but people have made lots of power on stock cams, good fuel mileage, etc. I would spend it elsewhere.
Yes, that passage is the gasket where the fire ring burned up is an oil passage where the oil goes up into the head, therefore compression was going into the crankcase and everywhere else.
If I had to guess, I would say all that compression contaminating the oil caused the mains to get so tore up. Most engine failures are closely related to oiling problems.