Oil on the plugs is likely worn or broken rings, but could be valve seals to.
A blown head gasket will put oil in the coolant, or coolant in the oil, or both.
What was the compression like?
Not only should all 4 read in the normal range, but be fairly close to even as well.
If its just a head gasket thats an easy fix, so long as the block and head are not warped.
May as well change the timing belt and water pump while its apart, a they are prone to failure, but easy to do if removing the head.
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