Did my 727 just die on me?

That kit and a few drilled out holes in the plate should be ok, but you would probably benefit from the full TF2 Transgo kit.
If the rear band looks good it is common to reuse them.
And just so you know, band breakage is common for hotrod cars that have not been prepared for the extra stress by using something like Fred suggested.

Thank you for the input Greg! I'll look into the full shift kit. The rear band still looks great IMO, heck the printing doesnt even look wore down.

I also studied the broken band this weekend, while I was tossing a cold beer back. It was a 8 rivet band. Im just stumped at how it broke in that particular spot. Im thinking the metal in the trans came from the band and then rubbing against the rotating parts. I did find that my apply lever was stamped with 3.2 on it also.

So with all the parts I have mentioned above, does it sound like it will be a stout trans and hold up well?