The price of grain painting is pretty steep. As I recall, the price by one of the leading practitioners for grain matching a buttstock extension was around $800.00. That would go a long way toward just restocking with a better grade blank. And the fake grain painting is just a surface finish that can get scratched off on a hunting gun.
It is much better having wood higher than the surrounding metal rather than lower, so long as the inletting is sound, as noted by nitro450exp. I think it would look a just fine if it was simply re-profiled, and refinished with a nice alkanet stain and oil finish to make it look more its' age. And those cheeks look like they have enough extra material for you to practice doing drop points.
