RG2 visually looks ok. Can I cut it off and solder another one in place?
Yes. Well, unsolder rather than literally cut, to avoid damage to the circuit board, but it is certainly replaceable. You can get one from many sources; here is a link to Farnell
http://export.farnell.com/on-semiconduc ... dp/1652365, only because their website is reasonably easy to use

Sound effects not withstanding, it can be blown without any visible damage, and it is one of the components I would expect to go first under the circumstances. Mind you, it is possible that something else is blown (I think the SOC, while primarily operating from 3.3V, does have some 5V feeds also), but maybe worth risking a 60p spare part to find out?
A good candidate for conversion to using a switched regulator if all the other parts look ok.

Could you kindly expand? I had assumed it was unrescuable
A switching regulator wastes less power than the linear type which is used in the Raspi. The switching regulator requires a few extra components and is therefore a slightly more expensive option, which is why the foundation went with linear type. This kind of conversion is of particular interest to those that want to run their Raspi from batteries, solar cells or suchlike.
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Best regards,
Kári.