Jenn,
This orchid doesn't look bad at all-- It is simply pining for the fjords!
Seriously, I've had much worse damage to crowns and seen wonders happen, even when I was a newbie. I had a Phal whose crown was black mush, with 2 leaves left. I kept it dry and let the roots do their work. It continued to grow new roots (but obviously no new leaves). Then it suddenly put out 3 (!!) basal keikis about 6-9 months later. I left them on the mother plant, and they quickly took over until she was just a lump of dried-up crown. I now have 2 of the keikis planted together, and they each have 2 flower spikes. the first basal keiki to emerge is now a strapping plant as large as the original mother. It is in an 8" pot and has 2 new flower spikes. Yes, it's taken about 2 years, but I now have 3 strong plants. Next year I'll repot them all together into an 8" pot so they are cozy. I will then have a specimen plant.
Now it's true that some phals keiki more easily than others, but with any luck you have a survivor. Please don't give up.
Keep Calm and Carry On!