A 14x7 with a 4.25" backspace shouldn't be rubbing that badly on the ball joints. That's a little more backspace than what you would normally see on a 14 SBP drum brake wheel, but not a ton. And that wasn't a minor rub, that was hitting pretty significantly.
I'd be VERY cautious about what I let that shop do to my car. And you should really inspect that rim too before you drive too far on it. Depending on where it was rubbing on the rim it could have damaged the structural integrity. If it was rubbing on a shoulder/corner of the rim and wore that down, the lip could come off the rim if it was ground down as much as that ball joint is.
-.25 degrees of camber isn't going to wear anything. Camber is a wearing angle, but not until you go past about 1* in either direction. A negative 1/4 of a degree is a very conservative alignment for a radial tire that won't wear a thing.
