Yes, cost is the only reason.
I'm trying to make a reasonable engine out of this that I can use for a good long time and for lots of miles, but realistically can't be breaking the bank in doing so. I have to keep it within my means. While I'm not rushed, I also don't want it sitting around for years while I piece things together a little bit at a time. I've decided to spring for some things, such as having it balanced, TSP recommended valve springs and some other items, but have to draw the line somewhere.
It sounds as though the only mechanical reason the valve would have touched the piston is due to the timing chain being stretched - is that correct? That is keeping in mind that I don't have a reason to believe this engine was ever taken apart after it left the factory.