If the compression tests (wet and dry) show good compression, it's not defective pistons or oil holes/rings. An oil seal blew, perhaps. If that's true, the thing that comes up to mind is perhaps there were serial and significant overfills of oil, which is possible @ quick lube facilities.

You need an experienced and honest Diagnostician to make an assessment, not a dealership service department.

No one who has not seen this engine can make a definitive statement. We're throwing out possibilities.

Use Yelp,. Google reviews etc to initially screen. The main point is to pay for diagnosis, ONLY.

Whatever you do, any work has to be GUARANTEED. No throwing around parts with a "maybe yes, maybe no."

The other thing is to get a general inspection of the entire vehicle befy deciding what to do. If there's another serious problem, it may not be cost effective to repair. Get the whole assessment of the vehicle, first.

The cam positioning sensor controls the ignition timing for the engine.  You can't just put in a new one without it being properly adjusted to the correct BTDC setting.  With the stated compression ratio, you don't have a blown engine.  Get a qualified mechanic to properly set the cam positioning sensor so the ignition is firing at the right time.

It might be the recall on those 2.4l engines that toyota did. The piston rings were bad and all of these burned oil. 

Unfortunately thats something commonly experienced with the 2008 Camry. The engines tend to burn oil and then blow up.

It could have been the oil pressure sensor that failed as well. Again, if the compression is good, then it may not be related to the oil burning issue, at all, IHMO.

YES

Any qualified mechanic will hook up a computer, bring up the program and adjust the position of the cam position sensor to specifications.  Engines that are badly out of time will exhibit the symptoms of a blown engine, ie, banging, coughing, inability to stay running, back firing, etc.