A decent LBS should be able to realign that with a reasonable degree of accuracy. That is completely fixable. We would routinely cold set and realign frames more tweaked than this when I worked in bike shops, using nothing more than the standard Park frame bending and alignment tools. It does sound like you will need to find a shop with employees that are familiar with steel. If anything should be binned, it is the LBS that told you it was trashed.

Sure, a framebuilder with a table will be able to do a more perfect job, but it is not necessary for something like this.