opening the valve cover is the better way. that and the bottom of the oil pan. on my 06 elantra, under the oil cap had a lot of burnt oil. i was thinkin the previous owner didnt change the oil too frequently the first 30k. but i didnt find any sludge in the engine.
as far as what causes sludge, ive always figured it was neglect and old oil. but i was told that years ago (like, 80s maybe?), you could tell if a car primarily used quaker state by the sludge buildup. quaker state today supposedly fixed that problem.
and i think what he meant by seafoam being bad for the cat, is the same concept of the motor flush. might knock too much loose and get clogged. but even then, it should still clean the cats. it does however, foul out spart plugs, so get ready to change those.