That pile of scrap has made it how long and how many miles and haven't cracked ? I think it could be used in some form. Bearing crush i believe happens when the 2 shell half contact each other........now thst chip will 1 corner of the bearing to maybe flex away from the crank some but extra clearance there isn't going hurt........if you measure bearing tightened down in the saddle you will find there is on purpose extra clearance right in the parting line area. I would be curious to here what JW, amp Mike, Cody or Bobb M thought of this situation.
I'm spoiled cause I trip over blocks,....but my concern would be is there more unseen issues,...and no one would buy that block knowing that it's got a hole essentially in the know weak part of the 455 block,...I agree with Sean I would have it on my mind constantly if it was a performance application,...if its destined for a cruiser that only sees 4500 to pass the Amish buggy or something,..sure it would be fine,...but I wouldn't throw much money at it,...dingleberry that hoe at best