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2002 V6, 2.7l engine, 146,000 miles, timing belt last replaced at 96,000 miles

Started to have issues with a loss of power but the engine seemed to run fine. Thought it was a transmission issue as I couldn't get any faster than 40 mph and it seemed like it didn't want to shift into the higher gears. Towed to dealer who pulled codes for misfires on cyl 2,4, and 6, multiple random misfires, and the camshaft position sensor (P0340). I replaced the camshaft position sensor myself at 140,000 miles because I found the plug crumbled in my hands (too much time/heat took its toll I thought).

Dealership mechanic checked compression and found Cyl 2=120 psi, Cyl 4=50 psi, and Cyl 6=110 psi. He told me they all should be up in the 170 psi range. He says the timing belt was one tooth out of time and given his findings the dealership typically will not attempt a repair and recommends replacing the engine ($13,000). To me something smells fishy here, am I wrong?
 

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Fishy

Sounds very Fishy.. $13,000 sounds like enough for you to buy a 2010 under 65,000 miles.. Timing belt would cause all cylinders to test the same even if the belt was off one tooth.. Need to find a factory Manual...
 
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