From your photo, it appears that the compressed frame section collapsed in the designed "crush zone". Like the frame and alignment shops, I agree that this is neither structurally nor dynamically a problem for the suspension or front power system. However, I see your point very clearly about the need for radiator and shroud alignment and adding an aftermarket front bumper.
From what you describe, biggman100, the front bumper "looks" like it's in the right position, though that's surprising with the crush at the frame horn. Alignment of the bumper does have some latitude with the bumper bracket slots.
In any case, is there an air bag system on the truck? Do you need to be concerned about air bag sensors being damaged? If not, there are a few options:
1) Pull the frame horn back to its original position as closely as possible and reinforce the reshaped section. The frame horn would then have the original damage plus the pull to contend with, which does impact the integrity of the metal. In the trade, the term is "memory", suggesting that the horn would readily collapsed to the crushed position with any impact or force—including an odd-angle winch pull. For that reason, even if the horn gets tugged to shape, I would create a reinforcement repair patch to put over the area, approximately the thickness of the frame horn. My welds would be MIG (most likely, using ER70S-6 0.035" wire) or TIG (unlikely, requires spotlessly clean, oxidation free metal). I would stitch weld or make a diamond or fish plate patch to avoid risk of linear stress points and tearing of the metal alongside the welds.
2) If the metal, despite being crushed, is stable and aligned closely enough, you could modify the planned winch-mount bumper creatively at its mounting bracket on this side. You would "square-up" the bumper with the body at the bent frame horn's bumper bracket...The crushed frame horn is one compression and would likely stay put, especially with the hefty winch bumper acting as a forward "cross-member". By doing this, the likelihood of the frame horn deforming further, or wanting to pull forward, would be no greater than the amount of force the frame shop claims is necessary to "pull" that horn straight.
In many ways, frame material is similar to other plate or even sheet steel. Imagine a piece of sheet metal being crushed, then either pulled straight or heated and pulled straight. In either case, the metal at this point is weaker than when originally formed or rolled. We know from experience that if we bend and work sheet metal back and forth, it quickly breaks down, "fatigues" and shears.
Closer to home, another example of this would be an early Jeep MB or CJ Jeep frame that was flexible C-channel and had riveted cross members. We considered these frames part of the "suspension", as they twisted substantially from end to end. Even the AMC era CJ frames flexed considerably. I once held the end of a new, bare CJ-7 frame while Jon Compton at Border Parts held the other end: We were able to twist that frame nearly a foot end-to-end.
Vintage Jeep 4x4s that have been "trail beaten hard and put away wet" almost always exhibit signs of frame cracking or repairs. This trend lasted through the 1975 CJs. Beginning in 1976, Jeep began building stiffer frames, fully welded and boxed, and frame survival got much better...
Modern vehicles, including the Jeep Wranglers and your Dakota, do have more rigid frames. The new strategy is a rigid frame with all handling and tuning in the suspension members and steering system. That said, your truck has stout frame horn material that took a good shot, collapsed, and would be happy to stay there. If possible, you might build a relocation bracket for the radiator to restore the core support location. This should not take much effort unless the crush in the frame horn creates an obstruction.
We can discuss this further, including details on a proper patch reinforcement, relocation brackets, welding technique and such. Your photo is helpful, I "got the visual" immediately.