If the piston were growing so much to the point of almost seizing the engine, the cylinder would be ruined and it would smoke like a chimney. If the rings or cylinder wall itself are that worn out to cause this low power and shut down issue, it will be noticeable....20-30psi minimum if not more.....but like I mentioned, it would really be smoking at this point.....did the guy do a compression test? If so, what did he find? The rings are what seal the cylinder from the cranckcase side....head gasket and valves seal from the topside.
If the head can come off, you can hand crank the engine until each cylinder hits bottom dead center and you can visually inspect the cylinder for wear marks, as well as measure the bore for wear. This is what I'd do before an all out expensive rebuild is done.
The fact that you can run under 4000 rpm without a power loss, smoke, overheating etc says volumes.......worn is worn...the engine will have blowby regardless if its that bad.