I'm not sure what all is going on here or did I miss something....nothing new,eh.
But to take rivets out I simply use my grnder, with a flap disk so I don't grind up the frame as with a carbon disk, and I hit the top of the rivet making it flat. Center punch it then drill it out with a bit smaller than the rivet, usually a 1/4 or 5/16. I drill till its just deep enough to be past the chassis rail, then get my favorite punch and knock it out. Nice and clean hole, no chisel marks ect on the chassis.