OK, shop is offering to cover costs of anything I feel needs replacing plus compensate for my hours.This is fair as if he was doing the work he'd need to cover transport back to his shop plus his labour hours and parts.
I've had a careful look at the state of rotor and stator. Appears to be a slight notch in the woodroffe keyway inside rotor plus the gouging on the face surface, so will replace. Stator has a visible crack on the inner bore parallel to the crank, so it's got to go too.
Thinking 3-phase might be nice to have for my urban environment, though I have LED headlight/tailight, so keeping batt happy has not been an issue. Which stator would be best to run my heated jacket liner? highest output 2 wire single phase or 3 wire 3 phase?