Is this bar supposed to be bent like this?

I definitely agree. That bar should be straight, with no bends at all. The surface rust is normal, it's all unprotected metal.

IMO, your dash got bent from the impact. Take a look at this photo:

http://pg.photos.yahoo.com/ph/xray328/detail?.dir=fc93&.dnm=55d5.jpg&.src=ph

In the lower-right, near the dash vent, there's a crease in the tan part of the dash. That shouldn't be there, either. Looks to me like the accident pushed the passenger compartment in on that side, and bent your dash.

I hope I'm wrong, but that's my $0.02.