I can't replace it for the 7100$ cost, but really like the bike. Would you (any of you) spend that kind of money to repair? DM me at marcteatum@gmail.com
I'm going to assume that you can't, or have no interest in doing any of this work yourself. Under that assumption, I think it leaves out the buy a used motor option
as I'm sure the dealer wants a lot to install that as well. So, the first thing I'd do is get a second opinion on the engine's condition and estimate to fix it from another dealer
or even an independent shop. Second thing I'd do is double check your statement that you can't replace the bike for $7100. These bikes are not holding value and the riders
out there are aging and selling, patience is your friend. Plus you'll have spare parts for the life of whatever C14 you buy (except for gaskets of course).
To actually answer your question, no I wouldn't spend $7100 to get it repaired.