Since the cam sensor is an INPUT to the Thunderheart it is unlikely that the Ignition module is damaging the cam sensor.
Over voltage and over heated are the two most common causes of cam sensor failure with what I've seen.
Have you checked the voltage on the bike with it running at speeds above idle? If so, is it over 14.4 v? Then its the VR /system.
Heat is a little harder to check but a decent non contact thermometer, or a DVM with a temp sensor will help -- use a small piece of kapton tape or something to use as a test point, if using non-contact option. Chrome/aluminum is to shiny and creates too much scatter often to get good results.
Given the time at which it fails from seeing other post, my vote sight unseen would be the voltage.