Some feedback:
When cleaning up the worm-rotted surface that you can now see in the pic what I did was a full depth circ saw pass about an inch in from the face, then took it over to the bandsaw. My experience there was not particularly great. Wresting a 80 lb beam around on the bandsaw wasn't great, and my 1/2" 3 tpi blade struggled with the cut. It's a 1hp 3 phase motor, the problem was the belt drive would just slip. The old growth stuff is just that tough. It also had tracking issues, so I'm not thrilled about the ideas of slicing off a face then re-glueing it.
Lee, I wish I knew someone with a sizeable end mill, but no luck there. Otherwise, a great idea. I'm wondering if this is something I'd want to try on my mortising machine now...
At the moment my most likely plan is to cut the lines with a plunged circ saw (yikes indeed) then follow up with a forstner for additional depth.