I see lots of quotes, lots of complex advice for checking, leakdowns etc.
Will sum up. Cannot leakdown for stem seals. Can leakdown for bad valves, but not for the seals. Cause if your valve is seated, then no air in there. And any air past the valve is out the exhaust or back through the carbs.
Want to check it easily? Simply pull off the exhaust. Look at valve. Pull off carbs (not quite so easy but...) Look at the valve. Or you can use a bore scope and crank engine to open valve.
You are looking for coking on the valves. They get extremely hot, and after you shut down, oil seepage will bake onto em. I have torn down enough bad seals, and can tell every time. Checking when cold, sometimes can even see the oil wet on it. On OHC engines, often this oil leaking can be seen down the plug hole, will see some oil on top of the piston. I have a vr6 engine in my garage with this issue, too bad I don't have a pic...
Other signs of possible valve stem seals. The fact it smokes when you are in rev up. Vacuum will suck oil past intake seal. Does it poof bad when you first start it up after sitting, like a small cough of smoke. Another sign of valve stem seals.
Now, the 550 and 650 setup appear to be almost same thing. I know my 650, and no hands on or even read up on related or precursory models. I do know however that for my 650, you can change the valve stem seals without needing to pull the head. Just need the right tools, and patience. Proper spring retainers and valve holder, can pop it off and put new one on.
With leaky seal, I still recommend taking head into a professional rebuilder, get it properly de-carboned and cleaned. It isn't too expensive for a top quality shop to do. I did that for my 650 head, worth every penny and took me about an hour to get the head off, and a saturday putting the head on, and tuning the freshly rebuilt carbs.
As for the cylinders, I am going to talk from my experience. I have never had bad cylinder walls from a proper maintained bike. Always just needed to be re-honed for the new rings to sit. Pistons on the other hand, made of garbage it seems so be prepared not for machining, but pistons and re-balance. If you want to compare, back to my 650:
It was a sitting engine, about eight years at 25K km. While head was out, I gave a close examination. No scoring, but was some rust just starting to form. To keep my budget, I turned the bike on a downward 45 degree lean, and just cleaned the piston heads and cylinder walls by hand. 2000km this year, no burning oil, no issues at all.