Repair or Rebuild?

[kevinC]

I have an '89 260E with 182,000 miles. Burns about 1 qt per 500 miles. Good compression but a leakdown test showed that it's losing @ 70% compression in #6 cyl. Foe a while, replacing #6's fouled plugs periodically would let it run smoothly. Now that doesn't work.
I've been told that I probably have a cracked piston and need either a factory new or factory remanufactured engine at close to $6,000... apparently a short block is not available. Noone seems to want to consider opening it up and doing the necessary repairs.
I need a little guidance here...is it worth having the work done...what are the pros/cons re factory new v reman? Short bock? Is repairing this engine rather than replacing it practical? What's a reasonable cost?
Overall the car is in good shape, but it has never had any transmission work...
Would I be better off looking for a '96 or '97 E320 and trading it in for whatever I can get???
Thanks