The only thing a stretched timing chain will do on the LT1s is retard the cam a bit, giving a tad more high-rpm power at the expense of low-end torque. But it's not significant.
Back to your situation - If you're removing the water pump, before you disassemble the water pump I would take the time to test the optispark vent harness. With the engine running, remove the little blue elbow from the intake piping and see if it is gently sucking air. If it is, your vent system is working right and you should be good. Remove the lower optispark vent hose and see if it's wet inside. If it is, you'll need to address that sooner rather than later. I have seen optisparks with accumulated liquids inside them.
If you want to go the extra mile, take your opti, clean it, and spray Flex Seal around all the case seals to give a second layer of water resistance. Then take all the plug terminals and inspect each for any signs of corrosion. If you see any, clean it out with a pipe cleaner. Then take dielectric grease and put some around the outside of each terminal and the inside of each plug boot to seal out moisture. Also check and replace the coil wire if there's ANY evidence of corrosion (you can buy them separately). Take the 4-pin harness on the passenger side, clean the connector body connection, then spray it with flex seal or if you have access to large heat shrink tubing, put large heat shrink tubing over that connection and then up 4" or so and seal that up. That will give you a waterproof LT1 ignition system.
If you're feeling super adventurous, pull the harmonic damper, remove the optispark, buy some E-torx sockets from Harbor Freight, disassemble it and loctite the rotor screws inside. I recently went through half a dozen optispark cores and about half of them had loose rotor screws inside. Then reassemble it, seal it with the flex seal, and reinstall. Make sure the slightly larger of the 3 slots is where the dowel pin goes.
Last trick: when replacing the water pump, drain the block first either by removing one or both knock sensors OR remove the thermostat housing and thermostat and use a shopvac to suck out coolant. Much less mess.