Chris
Your assumptions are correct, with one important condition; the crank needs to be positioned below TDC as step 1. THEN is would be safe to install the cam holder or, if the engine is assembled, turn the cams safely.
If somebody was to assume that the cams are timed for TDC, probed number 1 spark plug hole to position the crank, and then tightened down the cam holder... they'd be pushing #1 exhaust valve to nearly maximum lift while the piston is at maximum rise. And if the intake cam was mispositioned, it would be really easy to bend the valve not realizing the interference while tightening all those M7 bolts.
I agree that if the sprockets were not removed AND they were spot on in the first place, and the marks are visible (many stories on the board regarding missing timing marks) then no need to use the slots in back.
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