Talk about doom, gloom and scaremongering!!
We're advising this chap to change parts of his car and probably scaring the life out of him based on what??
OP - no doubt the click your wife heard was the steering lock activating. She thinks the wheels didn't turn and she thinks she turned the wheel one revolution, but the steering lock would activate much sooner than that and therefore the wheels wouldn't turn much in reality.
The pinch bolt you could see moving - did it only move/rotate round the column a similar amount to the amount of turning back and forth you did at the wheel? If so that is normal - there will be some play in the steering lock allowing a little back and forth movement of the steering wheel. That bolt passes through the column that the steering wheel is attached to - it's a single piece of solid bar from top to bottom of the column.
The twisted cowling needs investigating - it is possible it has moved or broken off its mounts, or more likely that in trying to turn the steering against the steering lock has forced the outer column (that the steering lock is attached to) to rotate.
Could you post a picture of the clamp that holds the column where it passes under the dash rail? That will allow the others to put to bed their fears of whether you have a lowering bracket or not.
Ahhh? Try losing steering on the motorway at 70mph.
Whether or not the pinchbolt came loose or he had the steering lock fail on - i'd say it was pretty serious.











