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All of my cam lobes are pretty similar to this. The car is an 89 BMW 325is with 174k miles. I noticed the pitting last time I adjusted the valves. Didn't notice the time before that so not 100%sure when it occured. Probably before I bought car...
What is the cause of this? Is it bad? I read at some website that it can be cause by moisture. Basically moisture is not compressible, so when under high pressure it finally explodes, like a microcopic bomb going off on the lobes. But then I found a website of some engine builder saying its caused by not changing oil often enough. I guess moisture could be a function of that...don't change the oil for a long time moisture will build up.
I never went over 5k on my oil changes since I bought the car 50k miles ago, so I don't think I caused this
My last analysis had fairly low iron, so I don't think the lobes are pitting any more or that it is causing any accelerated wear.