"Clacky" doesn't really hurt anything as long as you don't rev it hard enough to spit a shim out, tight on the other hand does huge amounts of damage in very short time.
I'd have them cad plated to prevent any rust that may flake off in time but if it's like most 7M's it'll breathe a bit heavy and will Oil coat them soon enough.
As for the water it could be condensation if you get big swings in temp and the car isn't running for long periods.
No real downside to +40 other than what you mentioned but I believe you can get +50's that would work in your thick block if needs be so it's not all bad.
Nah not really they just don't know any better and now and again you find one that actually listens and learns ;)
Too many bullshit car build shows on TV have brainwashed them into idiocy.
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