Mr. Tom,
In my opinion, and not likely a popular one, you have here a 'beautifully ugly', wonderful, piece of material...This tree has character that many of us only dream of owning...It looks ancient, looks as if it has survived centuries of abuse by mother nature, as if even the very ground it began on has over time been eroded away...
I have a difficult time understanding why anyone would want to destroy what the tree has in order to attempt to make it conform to some 'idealized' form...I think Mr. Jose Luis of Puerto Rico said it even better than I can "Adhering oneself to these strict principles, which I consider guidelines, is like castrating the art without reason. I have seen too many trees that do not adhere to the so called "Japanese" aesthetics ruined by force"...Here in the United States we tend to give far too much importance to 'doing it by the numbers', and in doing so often fail to make the best use of the material we are fortunate enough to have the opportunity to work with...Even Mr. Bill Valavanis has come to realize this 'United States bonsai mentality' and has stated "Too many times people tend to design, display and enjoy bonsai art to please others. In fact, bonsai and suiseki "rules" in America are more strict than in Japan. Really! Some stones and some bonsai which are not appreciated in America as "authentic" or "true" are often accepted in Japan. AND likewise, some bonsai and stones in Japan would never be accepted in America"...
As has been pointed out by yourself and others, to attempt to make this tree conform to the so-called 'standards' we have all been taught, is not only endangering the tree but also turning it into a life-time project that may never be satisfactorily completed...Ask yourself this, "If this material were in the hands of a Chinese artist or any other region that was not limited and constrained by 'Japanese tradition', would he/she be desiring to eliminate the most unique and outstanding characteristics of the tree?"...
I would suggest you take a long hard look at some of the work of the 'penjing' artists, Robert Steven, Min Hsuan Lo, and Nick Lenz, to see if there may be a work of 'art' hiding in this material without the possibility of destroying it...Perhaps not your original vision of the material, but often I find that working with the material instead of trying to make the tree conform to our desire will result in a much more appealing and artistic image...Perhaps this tree would even be best used in a penjing landscape setting where stones could be used to lessen the 'gap' under the 'dragon tail' if you truly find it that distracting...Personally I don't, but find it intriguing instead...I don’t know what is under the current soil line, but I would be inclined to raise it even farther out of the soil rather than bury it deeper IF there are some decent larger roots lower down…
Thank you for sharing the photos and I hope to be around long enough to see what you do with this wonderful spruce...
Regards
Behr