OK, yes I ended up with offset keys on both camshafts, and if you think about it it makes sense as follows :
There are two potential causes for valve timing error :
a) chain stretch
b) sprocket wear
Now obviously a) affects the right hand camshaft more than the left, because of the greater length of chain from the right cam to the crank compared to the left cam to the crank.
In my case now, the new chain essentially eliminates this effect a), leaving me only with effect b). It makes sense that both cam sprockets are equally worn, and they are both equally affected by the wear in the crank sprocket, and thus exhibit the same timing error.
Measurement of the valve lift is achieved with a dial guage. If you look at the 6.9 heads just above the #1 and #6 exhaust ports, there are threaded M6 holes provided specifically for the purpose of mounting the dial guage. I think these holes are visible even with the valve covers in place.
The strictly correct way to do it is to replace the #1 and #6 inlet valve hydraulic tappets with solid tappets, and adjust them to have zero clearance between the rocker and the heel of the corresponding camshaft lobe. I did do this because I don't have the special solid substitution tappet, and I didin't like the idea of messing with the rockers. I convinced myself that what I was doing was acceptable because my tappets were not leaking down, and so still met the criterion of zero rocker to camshaft heel clearance.
Note that in general this 'cheat' will not work on all engines, because the tappets tend to seep away pressure once the engine is shut off, and particularly if the engine has been standing some time since last running, clearance may have developed between the rocker and heel of the corrseponding camshaft lobe.
OK then on to performance issues. I think the only reason the W140 has the better of the 6.9 in some circumstances is the sophistication of its transmission. My car is an early one with 4 speed (later ones were 5 speed). The shift quality is considerably better than the 70's benzes, and it is aided by the engine management. Specifically, under full throttle acceleration, at the instant the transmission shifts, the engine management retards the engine timing for a very very brief moment to ease the torque on the gearbox and allow super-quick changes without slurring or harshness. Very clever, and it works very well. Add to that a fairly low ratio in 1st gear, available on demand, both from stand still and in kickdown.
Its also worth mentioning that the W140 transmission will, if appropriate, drop down 2 gears during a kickdown. So, one can be trickling along at 80km/h in 4th gear, and then stamping the gas in anger gives you 2nd gear instantly with no 'gathering up its skirts' as a 70's benz transmission does when kicking down. It is spectacular. Never ceases to gobsmack passengers.
Perhaps this is why S500's eat flex discs for breakfast?
Further, also realise that the M119 in the s500 is much more free revving than the 70's engine, and it spins to 6000 rpm with no complaints or harshness.
So after all these ramblings, I think the 6.9 has a fairly relaxed behavior for a car of that engine displacement, and I think its all down to transmission and final drive.