Originally Posted by 3alarmer

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...I can only tell you what I would do. Any alloy bar with that much cosmetic damage is eventually gonna fail because of stress cracking induced at the various (and sundry)deep circumferential scars. The only real question is when. I've done a bar fail while riding, and while interesting as an experience, would not choose to repeat it.

What i do on French bikes that need a 22.0 stem is to take a normal, everyday, easily obtained one that has the correct clamping diameter for whatever bar you are using (and I only use the ones with the center steel reinforcing sleeve....they are all over the place used, as are stems), and with some coarse sandpaper take down the 22.2 stem until it fits the 22.0 steerer tube.

This makes me feel as if I might save on facial reconstructive surgery in the long run. Good luck.

I see that is your option 2. Don't worry about weakenig the stem, it's not an issue.