In the grand scheme of things, if your goal is to sell the vehicle, I'd just get new (parts) from rockauto (or wherever you get your parts) whenever you find out what the issue is. Given the history of the AFM in this vehicle and your poor compression readings on that cylinder, I'd venture to say its a collapsed lifter like rdezs says.
AFM deletes are expensive if done properly (can be $800-$1500+ depending on whether or not you decide to add a little power by picking a larger cam), while just replacing the parts is probably like 400 bucks, depending on what failed (just parts, no labor). If the lifter wiped your cam which is VERY common may I add, You'll have to get a new cam. While you're in there, theres no point replacing only 1 lifter. If one goes out, they all are probably on their way out. If I was tackling this job, I'd get a set of new lifters, cam, maybe pushrods because of how often I hear those get killed, and then the consumables like the VVT Cam bolt and head gaskets.
Usually, the best route is to delete AFM, but trying to sell the vehicle is entirely different because the buyer is likely not going to be super thrilled that some "goofball previous owner" was messing around in the engine. If I was buying a vehicle at 200,000 miles, I would likely be buying it as a school vehicle for my kid, and if it's hot-rodded, you can't easily take it to the shop if something breaks because it's non-standard. I would turn away from a vehicle like that. I'd just fix the problems and sell a properly working vehicle.
