I'm sorry to hear about the theft of your bike. I don't think any "advice" on buying a stronger lock next time, or making your next bicycle look like moving crap, is going to make you feel much better now, but I will suggest you contact Kryptonite about your situation (keep the cut lock you found!). Even if you didn't get the insurance, you might get some benefit (on their Web site, at least, Kryptonite says to contact them in this sort of situation).

I don't want to give you false hope: I think, odds are, your bike will never be with you again. Nonetheless, file a police report.

Again, sorry to hear what happened to you.