So, should I re-barrel?

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Since it has a bent bolt already, there is no reason not to go the next step and get a proper welded bolt handle that will clear the scope. The one you have was a good try, a little fiddling and reweld should get you lower by a bit. It'll be mostly cut if off at the root and rotate the location of the reweld down around the bolt body. This is not home hobby stuff unless you weld for a living?

Next, I'd loose the variable with the zoom collar and consider a fixed power scope with a smaller ocular bell. With these changes, you can drop the scope height somewhat. Then add the appropriate cheek piece and you should be good to go.

Please note that stocks that were built for iron sights needed to get the shooters cheek down low to get behind the sights. So the stock has a fair bit of drop. Now you are going the other way. You need to come up a bit. BUT, that stock is still acting like a bent lever and it will raise up every time you ouch one off. A stock with a straighter comb will transfer the energy straight back and keep the muzzle down. A straighter stock might contribute to better accuracy?
 
Rebarreling is not a good option. You'll spend more money (and time) on it than it's worth. You can buy a new rifle cheaper than having that one rebarreled. I had it done and wouldn't go through the process again. It cost me about $600 and it took about 5 months to get it done.

I think you deserve a new rifle...now convince yourself.
 
This rifle is a "secondary" gun or a loaner to any friend wanting to hunt with me. I have a Marlin X7C in .308 I bought last year.
The Marlin has maybe a box of ammo through it and is a sweet shooter.
 
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