I totally agree with Craw and suzeeq. Don't abandon this project. It is well worth saving.
Good tip, Sue. Since the SS is machine washable, I agree that the few wierded out stitches will shape up!
I'd prolly do what Craw suggested if it was me. I'd remove the thrashed section of yarn, and tie in the fresh end...and move on down the line!
I've worked with all sorts of splitty yarns...seems like I am attracted to single ply yarns, which are notoriously splitty. Ack!
Finish this sweater, and wear it for casual at the grocery, or at the movies.
Then knit a new one with your 'experience' and you will have a perfect one! I am just like you. I really insist on perfection. But there are adjustments to be made along the road!