I really wasn't clear on the cam timing, RPM so I'll try to elaborate. What RPM the engine will make power at is dependent on many factors, cam timing is just one. The more advance in the cam timing, the sooner the power will come on, but the sooner it will be over. 3800 RPM isn't going to hurt that thing a bit. The 460 bottom ends are very stout. The two 460 in my boat which are automotive parts I swapped into the boat when the 351's gave up, turn 4500-6200 all day long on stock bottom ends. No, the old engines in the Lincoln's and such would not "stop" at 3500-4000 RPM, but that doesn't mean they continued to make power after that. Please don't take these numbers as absolute, they are just guesses. The 460 in my work truck had advanced cam timing, so it didn't make any more power if you turned it harder than about 3500-4000. You can also use the ignition timing and ignition advance to fine tune the power range. Running the cam 0* will really wake up that engine, it'll have great throttle response make more power and should net you more MPG. This will also not affect longevity in the least. The only way you will hurt it is if you get carried away with the ignition timing and advance and run it so far ahead that it pings. I would start with factory ignition timing and see how it does. Every engine responds to ignition timing a little different. Driving habits will also affect ignition timing, so that is something that will take a bit of trail and error. Stock is a good base line and you can work up or down (probably up)from there. This setup should pass emissions just fine with an injected engine, you can adjust the ignition timing to lean it out some to pass if it's borderline. Oh, you will be making more power in OD since the advanced cam timing will move the power band down. This will allow the engine to pull longer in OD before needing to down shift.
As long as your exhaust leak isn't large enough to allow massive amounts of "cold" air back into the head after shutdown, then no you don't have to fix it. The only concern with an exhaust leak at the manifold is ambient air getting up to an hot exhaust valve. If it's just a broken bolt and you can put up with the noise (if it's even leaking that bad) then you should be just fine running it that way. Hope that helps some.
As long as your exhaust leak isn't large enough to allow massive amounts of "cold" air back into the head after shutdown, then no you don't have to fix it. The only concern with an exhaust leak at the manifold is ambient air getting up to an hot exhaust valve. If it's just a broken bolt and you can put up with the noise (if it's even leaking that bad) then you should be just fine running it that way. Hope that helps some.