Reeleasy, I certainly feel for you and know how disheartening this must be. But I do want to point out that the construction method of using balsa core in the hull sides and the thickness of the fiberglass skin is not the problem - that is a completely sound way to build a boat and would (should) be a very solidly built hull. Plenty of boats (especially as they get bigger) are built that way and have zero issues.
Normally, the fact that a boat is a quarter century old also holds some merit as things need to be resealed every so often. But you mentioned you found a big issue back in 2005 - which is unacceptable. Hindsight is 20/20 and of course the problem should have been addressed back then... but I also understand that you had a survey done which, if you don't do this kind of work on a regular basis, the natural assumption would be to trust the surveyor. But this is a prime example of "a moisture meter does not a surveyor make"!
The problem is in the way that Grady did it - by not fully sealing and encapsulating the balsa and allowing water to get in. Either around the thru-hulls or, as we found in the other thread, not properly sealing the top of the hull edge (under the rubrail). The general construction idea is perfectly sound - it's the way it was actually done that is the problem.
FYI... you mentioned you replaced all thru-hulls, both above and below the waterline, with SS. Below the waterline thru-hulls should NOT be SS. They should either be bronze or Marelon (a special nylon-reinforced plastic).
I know that none of this makes you feel any better - if I were in your shoes, it wouldn't make me feel any better, either. I simply wanted to point out that the blame goes to the way Grady did it, not the construction idea.
Now... are you handy? Do you feel like a project? If you're somewhat handy, are not overly worried about it being aesthetically perfect in the end, you can do it! I'm somewhat oversimplifying this, but... remove the rubrail and thru-hulls, skin the outer hull side (either one piece or in sections), replace the core, glue (epoxy/lightweight glass) the skin back on. Obviously taking the extra steps that Grady didn't and make sure to use only composite products or thickened epoxy by any edges. You can actually stop there if you don't mind seeing the seam - the upper seam may be hidden by the rubrail, and the lower by bottom paint. But if you skinned it in one piece, the only seams that would be visible would be the two vertical seams. And, if you wanted to, you could address that with a gelcoat repair.