Back from Halls with new rubber mounted (Pirelli Scorpions), hopefully with pictures from the end result tonight. Consensus from Halls was that this was the worst example they had seen, but they see it often. They conisdered it a factory hack job. They had two 2012's in stock and they were clean on the front hubs, but gouged out on the rears. The hubs are powder coated flat black, apparently after the gouging, so it is very hard to see. We looked at some spare hubs and they had varying degrees of damage, some with none.
It appears the AJP hubs have been the same forever, so as the spoke OD has increased, they have had to add a secondary operation to ream out the holes.
It boils down to poor workmanship, all that needed to be done was control the depth of the ream. I cleaned up the sharp edges by hand with quick filing and droped in a little touch up paint. Ready for mounting soon!
The two sweet 2012's an EC250 and an EC300 with electric start were calling my name. My wife said no...