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You could use ebony veneer to repair the routed out section of the binding without removing the rest of it. Perhaps make a decorative inlay for the side. For ebony bindings I have layered veneers and under finish they looked like solid wood. I can ubderstand your reluctance to redo all that work, and if you can come up with an inlay for the side that matches the overall theme of the guitar it might look intentional.

Very often new router bits from any maker don't have the bearings tightened on the bit and they will fly off if you don't screw them down.

So, the bearing fell off, you didn't know, and were able to blindly freehand trim that for several inches while barely getting off track?

That's pretty impressive if you ask me.

_________________
Mike Lindstrom

Mike,
When the bearing comes off the part of the bit it fits onto acts as a guide. I think most of us who have used a flush cutting bit have had this experience at one time or another. Not a good feeling.
I have also had the bearings come apart, giving similar results. I try to oil the bearings after every use. When they start to feel "crunchy" it's time to replace them.