I asked some professional shoe and boot repair people about this. I had wanted to buy a pair of used boots, but the liner of one boot was ripped and distorted inside, pulling that boot down into a "scrunched" look each time I put it on. These repair people (99% of their work is with boots) told me that nothing could really be done, because the lining is stitched in, and even if cut out there would be issues with glue and so forth. Once the lining is ruined, it's really impossible to repair without taking the boot completely apart, costing you as much or more than a new pair of boots.
scootaboot, March 2010