OK, junk the turbo then. Don't post pictures of it asking for opinions?
I believe honing is in the .005 range, not the .05, but may be wrong.
I didn't say it was simple, but I would think once over bearings would be common, not "custom" and relatively inexpensive, and that next bearing size is what you have the shaft cut to, but what do I know.
Seņor Cheap Bastard is all about whichever is cheaper. Is that $2500 for a new short or somebody else's busted up rebuild? If it is new and rebuilding yours is anywhere near $2K, I'd agree to go with new. If yours is $1500, or the $2500 is for a rebuild, that becomes a tougher choice.
There is also the psychological piece. If you rebuild your's, you either have a known quantity or a reason to be totally pissed at yourself for not getting a new one when it breaks again, but who says a new one will be any better???