No, they do not all look like that! And they shouldn't paying so much $$ for them...
Yeah, I was going to say it looks pretty rough (to put it mildly) /ubbthreads/images/graemlins/laugh.gif Nothing some cleaning up can't fix though...I had one similar that was a "big name" housing and that thing looked like a POS when I got it and had the "hanging" pipe like yours, but worse...Luckily I was able to trim that off and clean it up real good...ended up selling it though, as I went a different route (took a turbotrix unit and added a custom pipe and flange for my Tial 40)...The TT unit was really nice and extra beefy (like 1/2" flange)...
As for killing your alternator, just ceramic coat your O2 housing and/or ceramic (tape) wrap it and use a heat shield near the alternator and you should be fine. Personally, I believe the tubular style O2 housings are much better than a ported oem unit unless you want to keep a sleeper look. I wouldn't bother with a chinese special junk and just clean up what you have.
edit - wish I could get the orig. pics of the "big name" POS unit I bought (I bet it's the same company? thankfully they went under), but want to show you what they should look like (this is a Turbotrix unit that was blank at the internal WG passage, but I added that pipe and flange; the rest of it was as-is from TT just cleaned up a little...It was/is a beautiful piece and what they should look like:
Also, as nice as th TT unit was, you czn see how far off it was to the turbo (see markings):
It's hard to tell in this pic, but I blended it and later polished it (not shown):
Point is, not matter how nice they look when you get them, it's the little details that count and make things that much better...I did the same sort of things to my turbo housing and even the FP Race manifold needed some work (although was a nice piece to start with, still didn't match up perfectly)...