Parks,
Everything looks pretty similar to mine, but I can see what you are looking at at full draw if everything is lined up in the pic like you are seeing at full draw.

Instead of messing with the sight and different peeps and changing peep heights and sight height etc........why didn't the shop just try a slide that has grooves that sit a little tighter to the cable rod. (In effect pull the cables over slightly further)
Its not going to hurt anything and will give you more clearance.
You can take the stock slide off and compare the length of the grooves to some aftermarket ones and try a couple to see if any of them give you a better sight picture. Its a much easier "fix" than all the other alterations that the dealer tried.
Some slides to try are the SIMS teflon, Saunders Hyper glide, Hicks or any of the better aftermarket ones.

I typically swap my slides out myself anyway for a pure teflon version.
It looks to me like you probably don't need much more clearance?