excellent, grinding the valves and valve seats is a great way to restore performance to an older engine. all the crap that collects around the valves, and the wear to the metal surfaces, means when a valve closes it no longer seals perfectly. grinding will remove all the crap and get a good clean smooth metal surface, meaning the valves seal correctly. you should notice a big difference even if you do it on an engine with 50k.
however it does mean the valves weren't bent, and unless your engine has very very high milage it could not explain the "significantly reduced" compression on 3 cylinders. so i think the timing seems even more likely now.
grinding requires the head to be removed so it means a new timing belt will be used and the timing will be set up correctly, so the car should run much better than it has for a long time when you get it back. and be faster, and use less petrol. i jjust hope this doesnt cost too much. and i'd double check that they're using a brand new timing belt just in case they try to cut corners. actually i'd go and buy yourself a gates timing belt and tell them to fit that, they're the best and they you know its sorted for a long time.