Paul, I've dismantled a number of Hondas that smoked, and tested the compression on most of them. In all cases where I tested the compression, it was still in line with the middle of the specified range in the workshop manual. One of those engines had been abused for years, and was so worn that the only parts I didn't throw away were the external parts, plus the fasteners.
I must add that all of those engines were old enough to still have cast iron oil rings. In recent years Honda has switched to chromed steel rail oil rings similar to those in cars, so it now takes a bit longer for the real oil burning to start, but the second ring, the oil scraper, is still cast iron, not chromed, and it wears out as quickly as ever.
Your Honda emits oil smoke, and has modest quantities of oil in the breather pipe. It does not seem to have anything wrong with it except that it smokes and has oil in the pipe. If it looks like a duck, quacks like a duck, smells like a duck, and walks like a duck, it's probably a duck.
