so I got a few minutes to sneak back out to the shop last night. Took my discolored bit with the slightly malformed edges and had a closer look. It was not smoking hot anymore, so I could do so without burning my fingers.

Turns out the end was not as bad as it first looked, most of what appeared to be mashed edges was actually chips that had sort of fused to the end of the bit. Most of it chipped off, it was sort of melded/stuck to the bit. The cutting edges were clearly ruined by the episode.
So I made enough passes on the Darex to make the drill point look like a drill again. I did not remove all that much of the end, maybe 1/16" I'd guess. I put another piece of SS in the lathe, slowed WAY down and made sure the tailstock was locked in place(!) and proceeded to drill a nice 3.8 hole in it. So it looks like, aside from being a bit shorter with a bit of discoloration still near the end, the bit is not really any worse for wear. So I did get the thing stinking hot, but apparently not hot enough to unduly louse up the heat treat.
I used Mr. Dirnbeck's idea of opening the original work piece up with an old masonry bit or two (thanks, good idea!) to get past any work hardened stuff and then finished the piece off.
Thanks for all of the comments. There is quite a lot to digest just reading through these replies.
Much appreciated, guys!
-Al
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