As someone who's done what John suggests, I'd recommend it. The boom being a little bit lower might mean that you have to duck as you tack or jibe, which is a heck of a nuisance, especially if you forget to do it. A short section of mast stub will solve that problem inexpensively.
Here's the link for Dwyer mast sections for the DM284, the most commonly used on Daysailers:
http://www.dwyermast.com/items.asp?cat1 ... M-284+MastYou mention that "It pulled the bottom of the mast out of its bottom plate and damaged the three bolt holes." Are you talking about the cast aluminum step? I had that happen also, but the mast wasn't damaged. Instead, the screws stripped out the threads in the mast step and one of them broke off a corner of it. If you need a new step, you can find it in the link above.