Just my .02c to this.
It's very difficult to actually troubleshoot or say anything definitive without actually viewing the items in question, but here goes.
After reading the "gunsmith" report, me thinks that things could have been salvaged, and not a total loss as he is purporting.
The alignment pin issue can be dealt with by use of shims or filler, ie. defcon.
Having the sight block/barrel alignment pin not align, isn't the best thing to happen, but it is not impossible to overcome without buying a new upper receiver.
It appears the feedramp cuts that have been "modified" could have been polished, but actually may not have been necessary. It's definately not the greatest way to have things, but test firing in my opinion, would not have been unsafe. The locking lugs looked fine and not tampered with.
I think you may have been able to use the existing parts and got 'er going.
Hey if it works, go with it.
I've started with worse and had some luck making a silk purse out of a sow's ear

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But, seeing as you've gotten rid of the barrel, all moot anyway.