Wow, that was quite a shot you took. Did you walk away?
The used V-stroms are not that expensive, I suspect you could pick one up pretty reasonably. Did they pay out for the value of the bike? I am all for rebuilding machines that get busted up; I have lost count of the bumpers, fenders and hoods I have replaced on the "Kiddie Kars" after my brood has run into things. That said, there were two of them that were broken enough that I just let them go.
This looks like one that I would let go.
I suspect that there is frame damage that your not noticing. I have pulled out a few frame rails, but not on a bike.
1973 Honda CL173 Being over hauled
1975 Honda CJ360 T Under construction
2005 Suzuki V-Strom DL-650
"Strive not to be a success, but rather to be of value." Albert Einstein