How many hours on the engines? If around 1,000 - 1,500 have them replace the oil pump and pan. At this point its just parts and a little more labor. To do the mids (exhaust), the whole engine will be torn apart to its core. Ask / tell the mechanic to replace / fix /update etc. anything he feels is questionable during the teardown of the engine. It will never be in a stripped condition like this again.
I had mine done a few years ago and went thru the above exercise (less the 1,000 hour service which I had done already). I have the same model and year as you - 2003 265, bought used in 06 with 84 hours and have 1,500 now. Been taking care of all maintenance and (knock on wood), zero issues. I did have an issue with one of my 'stat housings like the above posted but my mechanic, who is a friend, was able to fix it with a spot weld - he said its an issue on this engine but ez to fix. I rinse with salt-away, flush all the time and change the 'stats every other year.