Do you think I got screwed, or is it just part of the hobby?

I disagree. I've been in the business a long time. Every time we ran into a problem similar to this, it was the machine shop's responsibility. I mean, look at it this way. IF they did the job RIGHT, the engine wouldn't have to come back out. Since they obviously did not, it should be on them. It has to come back out because of THEIR mistake. should be part of their warranty. I've been on both sides of that spectrum. Both in the machine shop and in the mechanic shop. No mechanic shop I know would stand to pay their mechanic to pull that engine twice. NONE. But SOMEBODY'S gotta do it. Now, getting them to actually DO it is another thing altogether. But it IS the right thing for them to do.

Yeah...in a perfect world maybe.

try asking manufacturers that when you flatten a cam, find the eagle crank you bought and installed has a crack, new ring gear installed but had porosity in the process in which it was forged and now had a missing tooth, or lots of other thing that if you look closely at the fine print say...not liable for damages caused buy or related this product being it installer fault or parts interference..etc...

ya know what I mean...

sure it would be the 'right thing to do' but that is wishful thinking..

I've been in the business a while too, seen this too many times.

and no, it don't matter what they work on mainly, hell if it's mainly chevys..then they are used to doing a lot of checking and corrective machine work, you outta know that=checking rods for straightness on a sb chevy is A MUST, and milling the warped sbc heads, and decks are wacked out too most of the time.

But the main idea here is this=You either know how to use the equipment and know proper setup....Or you don't.
AND you either buy/keep up on replacing tired reamers/stones/cutters/bla bla bla or you don't and end up with a finished product destined for a trash can.

I've watched people use the sunnen before who didn't even watch the amp gauge to see where the tight spots are...that aint right.