Bill,
What a timely post. I have been wondering the exact same thing.
I started a thread ~2 weeks ago about a failing main breaker at my house. I have located the correct lugs for the new breaker and have an electrician coming over tomorrow to help swap in a new one.
I hope to cut off the last inch or 2 from the 4/0 AL service conductors and will try, as you say, to reshape the top bends to bring the new clean ends down into the lugs. I don't want to have to re-use the old ends, as they are a bit overheated. And I wonder how those AL wires will behave after sitting there for decades. Hopefully things go well tomorrow and I can update my post with how they behaved.
Lastly, to end with a laugh, I had let some co-workers know about my problem and one of them apparently was actually listening! He sent me a photo yesterday from an elec inspectors forum suggesting (with a wink) that I could take the approach in this picture if I don't feel like moving the old cables down.
Missing a little NoAlOx , but otherwise ready for inspection??
If this were the TV show
Let's Make A Deal, I think I know what's hiding behind Door#1 on the left!!