[hkshooterusp]

Hammer and punch is not normal, as you know. There most likely is some misalignment of the holes in the housing and the pin hole in the receiver. The bent ear could be part of the problem or a symptom of the problem, you'll have to figure out which.
If the holes are out of alignment forcing them together could be causing the ear to bend. If the pin goes through one ear and the receiver but binds on the second ear you'll have to figure out exactly where the issue is to fix it.
I'm going to take a SWAG and say the pin hole in the receiver could be slightly crooked, causing the pin to bind on the ears. Confirm by installing the pin through the ears with the housing off of the receiver. With an ear bent like that the ID of the hole as presented to the pin is actually choked off, made smaller. This could be the binding problem. If the pin goes through the ears just fine then the hole in the receiver is likely the culprit. The easiest way to correct is to run is drill through the receiver and ears to align the holes better.

The gap is excessive but I believe harmless.

 

[hkshooterusp]

^^^ What Joe said.

And looking at your picture again it looks as if the paddle is slightly canted which indicates you are right, the pin hole is crooked.