You're in area code 503 - Western Oregon?

The azalea should receive regular water during the months it isn't raining. The drainage looks like it would be adequate although your photo doesn't show detail...a mulch of something organic would help to conserve moisure and keep roots cool in summer and early Fall. They are shallow rooted and resent cultivating around and over the root zone.

I can't judge leaf color by the picture, but azaleas are not heavy feeders and this one appears to have enough nutrition to have set ample flower buds. If you cut out dead stems and the azalea is well established, it may form new growth in their place over time and the shape will improve. The dead steams could be from lack of water, a dog visiting, someone stepping on it, any number of things. You should prune away anything broken or dead with sharp pruners, lessen the possibility of a secondary infection or insect infestation.

Grafting in its present site could present problems, another thought if you want to add more color there would be to add azaleas, the evergreen types are widely available and often for not much money.

Here is a link that might be useful: See grafts

Thanks so much for all the good info. I went back over to the garden and took a couple more pictures. My phone isn't the best camera but I think I got one more that will show it better.

Here is a link that might be useful: {{gwi:392518}}

Yep I am in Western Oregon. Just east of Portland.