they are complaining about feeding him that? that isnt hardly a hassle at all! if you provide the feed, which it sounds like you do, then they shouldnt have a problem feeding it. i would have a sit-down with them if i were you.
WOW i thought MY feed was expensive. i havent had any experience with alfalfa anything, but i wonder if you could pretty much make that yourself..it might be time consuming, but you can get shredded beet pulp, or pelleted and alfalfa cubes and do what you said, soak it and blender it :) sounds like a good idea to me! and throw in some of your own biotin suppliment, since it says it has that in it. i would also suggest an electrolyte so he gets enough minerals, and it makes them drink more, plus it might make his food a little more tasty.
also, i have been feeding my hard keeper TB Pennfield Fibergized with Omega. i think its pretty similar, but idk if it would be easier to eat. i dont know the exact sugar content, but it smells very sweet, but doesnt make him hot in the slightest. i soak my horses food because of choke too, plus he gets beet pulp...he gets A LOT of food lol. but i feed it myself so..the BO doesnt have to worry about it. (im one of those types who likes to be the only one taking care of my horse..so its not inconvienient for me)
anyways, to the OP, why not try looking up all of the ingredients and trying to make it yourself? i think i would at least give it a shot, $40 just seems like a lot of money for a not even 50lb bag of feed..plus you said it was kind of out of the way to get. but to each his own :)