I've seen some pretty nasty Clevelands too, and required the owner to fix them prior to signing off the annual.
I normally will not take money or make log book entries until the aircraft is airworthy. and safe to fly.
When it is apparent that the owner is unwilling to maintain their aircraft, I simply pack my tool box and go home.
As for the Stinson owner, he is free to do as he wants. he knows my requirements, When he gets the Stinson repaired, I'd be happy to complete the annual.
If you have not charged him, you are clear to act however your conscience dictates. If he has any sense he'll probably bring it back with Clevelands installed anyway, and the whole issue is moot. The reality is you are not incorrect in your opinion and most people have long ago removed them due to the same reality conclusion.
I do the same thing with boat owners, when things get stupid, I leave; but I have a lot more liability at stake. You would have to do something malicious to get charged with manslaughter, I just have to let someone make a mistake.