Well, you're quick to jump to conclusions there buddy. Why do you assume its junk and the shop fubar'd it up? I know you are bitter about machine shops, but reserve your emotions here. I'm not fond of throwing this block in the trash either as you suggested.
Because they moved the crank without moving the stuff that references off the crank. I'm not assuming the shop fubar'd it up, you told me they fubar'd it up with your measurements...this stands as a fact. The question still remains though...how bad they fubar'd it up.
The correct order of operation for block machine work is:
1: main bores...becuase all other operations reference from this.
2: everything else.
You can't do everything else, then do the crank. If one were to draw an imaginary line down the center of the cylinder bore, it should intersect the exact centerline of the mains. This is how it was done at the factory. When you leave the cylinders alone and remachine the main bores, you're moving the crank up in the block, so now our cylinder centerline intersects below the main centerline. This is what your block looks like now...and the decks aren't square to the mains either, which doesn't really matter in this case.
This is why you need to measure where the crank is now in relation to where it should be....to see how far they cut into the block when they did the mains. You need this information for several reasons...first one being....see if you can get a timing chain that's short enough to fit without an inch of slop in it, and secondly...to see how far you are away from square. I would probably allow a few thousandths, but not much more unless the bores and deck were remachined to square everything back up.
This will also change your compression ratio somewhat, because now the pistons be higher in the cylinder at TDC...it may be a problem, it may not...but we won't know without measuring it.
I have no problem with machine shops. I have a problem with machinists who don't "get it", and do work like this without thinking twice about it. Its hard work to do things right....people don't like to work hard.