I have a 95 320 with approx. 73,000 mi. You didn't say where your leak was, however that block which is almost identical to the 103 design which was installed in the 88 300SELs commonly leaks at the front crank seal after about 70K mi. The part is cheap. The labor is not. I changed out the 88's seal. The 95 is leaking there to but is not a major problem yet. If you are concerned aboout compression, I would use a compression gauge. The SRS proble is scary. That could be expensive. Or it could be something as simple as a disconnected air bag (it's in the steering wheel).
Overall, we like the 95 320 very much. It is much more responsive than the 88 and has given us good service so far.