Perhaps it was the use of Stoner 63 parts and M16 barrel blanks that evolved into "M16/AK hybrid", when in fact it appears they were selected primarily to serve as suitable 5.56mm components in an AK based design.
The question then is why did IMI develop the Galil, unless it was simply to adapt a well made AK (M62) to 5.56mm prior to introduction of the 5.56mm M76 Valmet. Otherwise it would certainly appear simpler to license produce the M76.
Note that the Galil receiver is indeed machined, but not forged, but rather cut from bar stock/ billet material. That the design appeared as CNC machine tools made the labor expense of producing such a design less of a negative factor didn't hurt a bit.
Note too, that the Finns have now abandoned the stamped-receiver rk/76 in 5,56mm NATO, and that likewise the initial 1947-50 *type 1* Kalishnikov production that utilized a stamped receiver was withdrawn by the Soviet Army and replaced with the second version milled receiver design commonly encountered in Vietnam, standard until the modernized AKM version appeared circa 1959.
There have also been reports of failures of some stamped SVD Dragonov and PSL rifle receivers when using heavy-bullet 7,62x54r ammunition meant for the PK [Kalishnikov design again!] light machinegun, well beyond the pressure and velocity levels of the AK47s 7,62x39mm M43 cartridge, but which may still show a possible limitation of the circa-1959 stamped-receiver AKM *third-generation* AK design- as do RPK Squad Auto Weapons, built with thicker sheet metal material than their AKM brethern.