I liked this puzzle a lot - it was difficult enough to be of interest, but not so difficult to be boring. I liked the start, when you could just fill in all the 1s, and the finish, when you had to think a bit to find some useful chain.
@Jeff: your chain is much shorter than mine, congratulations! - I established a contradiction by combining the bilocation/bivalue graphs, but the path had about 10 nodes; still, it was quite easy to follow this path (I just assumed one number in one of the last three blocks, then followed the path in c9 up to block 1 (which collapsed), then noticed that all 5s collapsed and then established a contradiction with two 8 in the same column)
[BTW, thanks a lot for the puzzle you sent me - I will be offline for 2 weeks, but I'll comment on the puzzle afterwards]
Probably this works also without graphical methods (I am sure it does), but it is sooo much fun to draw these graphs and follow the links...