Well gentlemen (and ladies), I put a new timing belt in moments ago and tried starting her up while keeping my fingers crossed. Not even a cough. Checked compression and wasn't too surprised to find 195psi in #2 and #3, but absolutely zero in #1 and #4. I can picture just what happened and I'm sure you can too. It's the stuff nightmares are made of.
So, not the end of the world but certainly a s**t load of work to do over again.
It's still hard for me to believe that the one little missing dowel could have led to the timing belt failing. Seems like the cover couldn't have been out of place by half a millimeter even without it. By the way the belt was totally thrashed, not just snapped clean. It was shredded lengthwise down the middle about 12 inches, but who knows, could have just got chewed up by the sprockets after breaking.
Ah well, if you'll excuse me I need to devote the remainder of this fine evening drinking my sorrows into sweet oblivion. Sometimes luck don't be a lady. Back to the work bench!