I never go to DMV without an appointment anymore. You can make them online. I have never waited more than 10-15 minutes to get anything done with an appointment. You bypass the line stretching out the door and just sign in at the front desk, they give you a number, and it gets called fairly quickly. It takes 10-14 days lead time to do this, so you can't be in a hurry, but it is worth it.
One of the key steps you left out in the YOM plates process, Ted, is to call DMV Special Processing Customer Service in Sacramento to check the plates before trying to register them--(916) 657-6560 or (800) 777-0133. They would have shown in their computer as still in use and you could have explained the situation and perhaps started the process to get them cleared without standing in line and going through this hassle above. If "it was turned into a race car, stolen, recovered, parted out and sold at auction," does that mean the chassis still exists somewhere? If you can't prove to them that the car was destroyed, they may not free up the plate number, although with you being the former registrant, maybe they will listen and let you do it. There is no incentive for them to be flexible, however....
I had good luck doing this myself, but it was not without hassle. The DMV field office guy who processed my application was colorblind, and put the wrong color down for my YOM sticker on the plates (they were pink, not orange, but somehow that's what he wrote down) plus he charged me only $12 instead of $45. I asked him if that was really the right amount and he said "that's what the computer says." 3 months later, I got a bill from Sacramento saying they needed another $33 to process my application. I sent that off, and 2 months later I got a call asking me if my sticker was really orange. I said no, it was pink, and I could send them a picture of it to prove it. Three weeks later, I finally got my new registration, several months after the temporary permit had run out.
It's never easy, but it can be done. Hope you can work it out with them.
TT