Advice on stroker build with cracked cylinder

That's sounds like a good approach, especially if they can stop drill the crack. How about the water around the crack? Even though it won't be an issue in the cylinder anymore, wont stop drilling both ends of the crack create 2 more places for water to escape the jacket and seep into the void behind the sleeve? Would that be a potential future problem or...?
Yes, that makes all the sense in the world. But again, the 'green sleeve retainer stuff' will help.. and you can put other material in the holes. The bored cylinder IS going to expand at that crack when the sleeve goes in. I'd rather do all I can to make the stress at the ends of the crack stop rather than possibly working its way on up or down to the top or bottom. If that happens, then it would be ruined.

As for twist and other stresses, yes, each cylinder wall is part of the block's rigidity. But, they also may be wanting to just cover the whole situation with you. How much it can/may effect strength is not knowable unless someone had done the exact repair.

I'd reason that:
In your shoes, with the difficulty of sourcing blocks, I'd go for it. But I realize that this is a judgement call. Maybe first cost out getting another block. Sleeving is certainly not free.