ok, considering what you want here is what i would do
1. first that block for the bridge needs levelling off. I have a router thicknessing jig i made which would take it down to the wood quite neatly. (the general idea of a thicknesser jig -
http://www.wealdentool.com/acatalog/tips_15.html)
2. Time to carefully strip the guitar of the black and red bits leaving the signiture area well alone. this would be done with carefull scr@ping and sanding.
3. I would want to plug that bridge hole and i would want it to fit perfectly so i would have a male and female template made on a laser cutter to a size slightly bigger than the current route. I would use the female template on the body to route out for the plug, then when i had hit a depth that was all wood i would use the male template to cut the plug from a new bit of mahogany.
i would leave the plug slightly proud so i could use the router thicknesser to get it to its final level
4. a choice at this stage, it could just be drilled for a new tune-o-matic bridge with a visable but neat plug or a partial re veneer could be done
5. if going for the partial veneer i would find some nice plain mahogany veneer. I would then draw a line on the body below the signiture and parallel to the centre line. i would then get the router thicknesser out again and reduce the thickness on most of the body by the thickness of the veneer - glue the veneer in place. it will cover the repair and effectively make the body look like a two-piece with off centre join from the front. obviously the veneer will be visable around the edge but you would have to look close to see it.
6. finishing will be an issue, obviously now you have the old section of mahogany with the signiture and a newer cleaner section of mahogany covering the rest of the body, you also have the problem that anything done to the guitar before may make lacquering awkward - easy to solve when you can strip the guitar properly but difficult when you have a section you cant touch. i would go with a slight tinit on the clean section followed by a bit of oil everywhere else - leaving it quite raw but with some protection
7. Obviously it needs a refret and some work on neck too, i would reveneer the front of the headstock and get a new dean decal made
(and none of those jobs are particularly easy!!)