If you are on a budget, lots of things can be reused in good shape. Pistons and rings, certainly. Even bearings if they are in good shape. Only stupid men reuse rings, though. Your machinist is not a stupid man.

My initial argument was simple, and not really well thought out:
I removed the pistons from a perfectly good working engine so the block could be properly cleaned, its line bore checked, etc.
The rings would be properly clocked and pistons would then be installed back in place with a ring compressor.
It was not a move borne out of cheapness, but simply a "let sleeping dogs lie" sort of an approach.
I now know better.

I am good at some things at life, but behavior of metal under stress and the intricacies involved in machining that metal to serve my needs is an area I need to gain experience in.

And, I really am thankful to this forum for everything I am learning in this respect, as well as the support this interesting bunch of crazy intelligent, cat loving boostaholics generously provide.

If you were putting the same rings in the same bores without a hone, then maybe. It still makes me nervous. The moment you re-hone the cylinders, you have fresh peaks that need to be worn down, and that means fresh rings to wear them down with. No exceptions.

Piston rings and pistons are the single most labor-intensive part of a car to replace. "While you're in there" applies in spades. There is no backup plan if you cheap out on rings and have a problem - you get to do the entire job over again from the beginning.

That's the key.
This happens to be the THIRD time I am tearing this engine apart for one reason or another since July 2012.
First time was for forged internals, and a parking attendant managed to do massive damage a couple years back, and now this wrist pin malady...

I really want to just drive and maintain this car.

Also, this turbo project turned into a monster of a job, and has been going on for almost 9 months now - doing research, sourcing parts and know how, configuring and re-configuring stuff to fit the huge turbo assembly in (had to get a new core for the radiator to chop it down by 2 Cm, I used a 30 Cm core instead of the standard 32, for example), all the air ducting, heat management, shielding, the active hood vent, electrical and vacuum circuits, new gauge setup, etc - means spending countless hours and pulling all-nighters in the garage.

I lost about 12 lbs in the past month.
So, yes. This car needs to run well for a lot of reasons.

RE: cutting the ring grooves. That's a common thing. Take your .004" off each side.