Did I kill my rear end?

[john31s]

So I may have ruined a rear end this past weekend. I was replacing the rear upper control arms and the bushings on top of the pumpkin and ran into an issue. I got the arm off and the bushing out pretty easily, but was left with the outer casing of the rubber bushing left in the hole. My plan was to fold the material into the center and driver the sleeve out. This did not work out so well as I was left with a smaller ring left inside the casting. To get it out I went in with a carbide cutting bit on a dremile to cut through the ring and give me a gap to relieve pressure and slide the last piece out. That was easy enough and I got it out. In doing so I put a 1/32-1/16 inch deep grove inside the casting (see picture). Being cast iron there is no way to repair it and I’m afraid driving the new bearing in will cause it to crack. Even if I get it in I assume it will fail eventually. So my question is did I ruin the rear?