oh no, is this 8.75 housing too bad?

There is nothing wrong with that rear. Most housings are not straight. The ends being offset just means it was narrowed correctly with a jig. I narrow rears and this is correct. What I have done for customers for a great deal more cash, is, cut the ends off, jig it, then heat and straighten the tubes by heating and bending. This is very common on rears that have a back brace installed (harder to straighten). The centerline of the carrier does not care where the tubes are located but the centerline of the axle/bearing end is critical.

It's not an issue of centerline here...it's an issue of oil seal fitment with the tapered bearings he is going to use. The axle may be true to the centerline, but the seal is located in the housing. It'll be a leaky mess.
Besides the point, I've seen housings narrowed with a slight amount of overlap to make up for a slight bend, but what he's got there is huge. If it was that far off, it should have been tossed.