I would carry on trying to get the remains of the bolt out. If you can carry on accurately drilling out what's left in very small size increases there will come a point that you should be able to spin it out. Yes, it will be a pain. Keep soaking it with the Plus Gas. If you can get a small triangular needle file in there, a nice new sharp one, you might be able to get it to break. The remains of the thread, not the file! A small nick into the threads won't be a problem. This bolt is little more than an axle for the arm and only needs to be tightened enough to squeeze the inner sleeve of the rubber bust to stop it turning. This is why you have small raised areas on each side. They help centralise the arm and keep it from rubbing on the sides of the attachment flanges. 40-50 ft/lbs should be more than enough for that. These should be tightened with the car back on the ground and in a normal static position so that the rubber can twist equally in both directions. If you tighten it with the suspension hanging it will be under torsion when back on the wheels, this will shorten its life.
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