Well it sounds like the bottom end flew apart. It's will be really hard to determine if it had crank walk if the entire bottom end came apart. When my engine died my connecting rod broke and put a nice hole in the side of the block. So I bought a working engine with 110k miles and it had a terrible blow-by problem. So I built a stroker out of it. If Chrysler won't cover the loss and you want to keep the jeep, it's a great chance to build a stroker engine, especially if the engine is still useable. Good luck man!!
J.E.E.P. = Just Enjoy Every Problem or Just Empty Every Pocket