Regarding chain stretch and timing problems:
Isn't there a way to measure chain stretch using the position of the crank shaft compared to the position of the cam shaft? Also, last year at Joe's tech session we had my cam cover off. Joe was able to examine my chain tensioner and note that it was fully extended, meaning that my chain was stretch to the limit of the tensioner. Perhaps he could elaborate on this procedure.
Regarding oil consumption:
Can't you combine a compression test, a leak down test, and maybe some other diagnostic procedures to see if your leakage is around the valves or the rings? This would give you a hint as to what may need rebuilt. As said before, with the head off you can learn something about the bottom end of the engine.
My car has high oil consumption, but fairly good timing even with the stretched chain. I plan change the timing chain at my first opprotunity and have the head reconditioned this winter. When the head comes off, the cylinders, pistons, rings, etc will be checked for indications of bottom end wear.
Rodd
1966 230SL Euro
1994 E420