If just the points plate was damaged it would be an easy fix, unfortunately the threaded insert inside the armature is destroyed too, so the whole thing needs to come out.
As for the compression issue, I'm not sure. I'm getting 150 now on compression. Not sure if the oil hasn't leaked out yet or I had a leak in the tester. I'll keep an eye out. In the meantime, I once again need to pull off the mag. Old bikes are getting old.