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As Branwen says basically. Every one of those scratches/gouges/over the top drillings is a stress riser and therefore a crack just waiting to happen. That'll need some seriously neat filing and polishing to make good.
Obviously irrelevant as drilling holes to bolt the new drops in will create more stress risers anyway.I'm definitely no engineer but from my completely uneducated standpoint I predict the first skid stop/resisting pedals to slow down will kill it in the face with fire...
Was there a reason not to run gears/magic gear/eno/ecc bb or is it just money to burn and overestimated abilities at work here?
I'm (obviously) not an engineer but I would have thought the main forces would be acting along the stays causing the stay/dropout area to shear due to the loss of the ALU. But after fitting in the ends surly that would have fixed it.
As I say, have no idea whether any of this is true.