I think that is the simplest approach. But with this hammer being so cheap of metal and numerich having replacement hammers out of stock, I am terrified I might break the hammer and end up with a worse problem.
I do have a good deal of experience with filing and woodworking and staining, however. I'm just just not comfortable with bending.
You put some ideas in my head, and after taking another look, I realized the hammer was peened incorrectly: Two of the opposing peens are too tight, the other two are too loose, creating a pivot point, and a bit of play. I think I can correct that, and gain a tiny bit of alignment. Then, by filing a bit off the bolster and deepening the inletting a hair, I can gain more, and a shim at bottom of lockplate will gain the rest. If I need to take a bit of stock off for hammer clearance, I can do so. I love staining wood, and can match it without much trouble.
Its definitely more work, but its the type of work I'm comfortable with, and I know if I try to bend that hammer without having a spare one, I have a high chance of ending up with a worse problem due to ignorance of how to do it.
Thanks,