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They do grind the lobes, but at the same time the reduce base circle of the cam lobe(this allows greater lift and duration),when you re-adjust your valve lash you are in effect bringing the cam closer to the valve. In extreme regrinds they will weld more material to the cam lobe so they get get a more agressive profile and still stay within the adjustment range of the stock valve followers. If they don't weld more material to the cam lobe when they go to a very agressive profile you are sometimes required to get longer valves.
The best way is still to go with a new billet ground cam, so they do not have to reduce the base circle, you will have less valetrain noise, and will have to adjust your valves much less often. I have regrinds, and have to adjust them every about every 5,000 miles.
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