In my humble opinion, this is not really a fair thread. Let me explain my thoughts:
There is no "before" picture. The results riflechair has drawn presuppose that the rifle was in some way collectible BEFORE being rebuilt to its present condition. In my experience with DGR and their work, this is NOT TYPICAL.
In the USA, the CMP has recently sold thousands of woodless Danish and Greek used M1's without woodwork of any kind. When the M1s were returned, many of them came back with unserviceable and/or deteriorated stocks. I know for a 100% fact that once all the "just fine as-is" rifles were sold, the CMP built as many serviceable rifles as possible by canibalizing wood from guns that had less than serviceable stock sets on them. The rifles came in batches, and so wood quality has varied over time.
The rifles that remained after all these efforts included many many very serviceable and nice sets of metal with not enough original wood left to stock them all. The CMP's solution was to sell these as "woodless garands" at a significant savings over complete rifles. They did this knowing full well there was a market for people who wanted metal to build match rifles and "like new" refurbs for shooting purposes, as opposed to collection purposes - after all the CMP exists to promote the shooting sports.
In all liklihood, the pictured rifle was received by DGR as a woodless Dane. In that spirit, I have zero problem with what was done. I find it premature to draw conclusions about people's ethics with respect to collecting when the rifle's condition prior to being rebuilt isn't disclosed.
Would people have voted the same way if the "before" picture was shown and the rifle looked good with a decent set of USGI walnut on it? I'd bet that more people would have chosen option No.2 if so.
Frankly, there is no shortage of non-collectible M1's out there, and in that spirit I see no issue with rifles like the depicted M1 being built up from barelled actions, woodelss M1's, etc. I view it much the same as people restoring sportered Ross Rifles, or stripping the shellac of a particularly beat and ugly mis-matched RC K98k.
That's my $.02 cents anyhow. I certainly doubt that Riflechair's conclusions would hold true for say, an all-correct late-war vet bringback K98k being rebuilt by polishing out the machine marks, commercial blueing and a new fancy walnut stock or an as-issued ww2 era correct M1 with a nice stock cartouche, etc.