I think the best and safest answer is probably => yes you've buggered the hub.

If you check out the limits in chapter 35-360 in the FSM they are pretty strict.

However, if you can get someone to turn the hub on a lathe then you might be able to get within the specifications when you come to reassemble it. BUT it is a bit dodgy in my opinion. Even here where prices are high the cost of a second hand trailing arm is about 70 euros... I'm of the opinion trying to fix that damage isn't worth the risk. Surely someone here will have a spare they can send you? I'd send you mine but the postage would kill us both off...

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1992 W201 190E 1.8 171,000 km - Daily driver
1981 W123 300D ~ 100,000 miles / 160,000 km - project car stripped to the bone
1965 Land Rover Series 2a Station Wagon CIS recovery therapy!
1961 Volvo PV544 Bare metal rat rod-ish thing

I'm here to chat about cars and to help others - I'm not here "to always be right" like an internet warrior



Don't leave that there - I'll take it to bits!