Lousy news....
Mike,
Sorry to hear about the decision. I think they probably low-balled the rating for your back. Sounds like it was consistent with their policy on pain and Range of Motion, which I think is illegal. I mentioned elsewhere that I think if challenged in Federal court, this would not stand. However, that sort of challenge would take a few years to until you had an answer.
All that being said, if you think that accepting the findings and going to the VA to see what you can get is right for you based on your circumstances with your wife, then it is hard to argue with that. You have to do what you feel is right.
I said the above so you understand I am not trying to convince you of anything. I just wanted to clarify something about your OCONUS comment. Did you know your Formal PEB would be held at Walter Reed?
The additional processing time should only be a few months. Finally, if you accept the findings, you may waive later appeal. Consider that they may change the law on concurrent receipt. If you are taking all of this into account and making an informed decision, then your choice is understandable.
The VA compensation depends on several things. I have heard as little as 3 months and depending on how the administrative adjudication process goes (meaning assuming you get rated at the appropriate percentage and do not need to appeal) it can stretch on for years. A wildcard is the Benefits Delivery at Discharge program. I don't have a feel if this program is speeding up delivery to a so-called "seamless transition." Also, depending on where you apply, this can impact the processing time.
I hate to hear that you are having to deal with all of this, your physical situation, the administrative process, and your wife being sick as well. I hope things go better for you and your family. If there is anything we can do or any questions, please let us know.