The tops of the pistons have a lot of dents on them so i'm currently assuming that the turbo broke and part of the internal fan flew in the intake and caused the damage to the heads.
KISS.. keep it simple. I TOTALLY get the frustration though.
http://www.mazdas247.com/forum/showthread.php?123848722-1289-A-story-of-rebirth
The turbo turbine DID NOT cause the dimples in the pistons... think about it. A chunk of the turbine would have had to have broken off, pulled through piping, into the intercooler, sucked up the intake pipe, past the throttle body, into the intake, sucked PAST an intake valve, during the millisecond its open, then do what? How would it dent the piston?
I had ZERO compression with my CRANK / NO START situation. The timing was about 110 degrees off..
If you have verified spark, and fuel.. its time to check the timing. You may only be a notch or two off if you have compression numbers like that..
That being said.... how many miles are on this thing?
What you are describing could be worn out piston rings.. you said 50psi (dry) 60psi(wet) but you didn't say specifically how much each is getting. Those numbers are important.
For example, (going in order, 1,2,3,4) if you got 50spi, 52psi, 140psi, 146psi.. that would indicate a head gasket leak between the 1 and 2 cylinders.
If ALL cylinders are getting bad, low compression, like 50psi, for example.. you really want to verify the timing. You usually don't get ALL 4 cylinders failing at once.
So I guess the question is.. when you did this dry and wet compression tests, did you test ALL the cylinders, or just 1?
And if you did do all 4, what were the results?
"i am almost positive the timing was not the issue" is not positive. You may be ripping into this motor for no reason.