That's quite an emotional story, and it's times like this when forums can be of real use.
I'm no mechanic, so based on what's been said, and the pics of the landy, I will assume that it's not salvageable (although there may be some token parts that could be saved). I think there's alot to be said for writing to large companys, and the media, and drumming up interest and help. With the help of these, it becomes much more easy to do something good for a needy member of the society. Large companys are usually helpful in these situations because of the good publicity they get.
I know that the story's a little old now, but who think's it would be possible to have a landyzone and club whip round, and try and sort this chap out with a decent series II, and perhaps get Land Rover onboard to throw in a Land Rover Experience course or something? It would be good for landyzone, and land rover owers in general, good for any companies involved, and most importantly, try and turn this poor guys frown, upside down.