Thanks for the input guys. The whole thing makes me sad to think about ... I hate the thought that my car is falling apart. Although, strangely, there aren't many other rusty areas beneath the car (despite it being an all-season vehicle its whole life). When I had it "evaluated" by a very good body guy about 6 months ago, he said the overall condition of the undercarraige and body was quite good, aside from the rocker panel (disaster) and a couple of areas on the doors (probably due to a bad paint job ten years ago). Guess he missed this one, or it's new. 
I'm taking the car to my indy tomorrow to have him fix my no-functional drivers window (with no AC, I need that window!), so I'll ask him if he can take care of the rear diff at the same time and look at the crack. He'll be honest about my options. I know the car is worth it to me, it's just a question of what's necessary and what's the safest option. 
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1987 300D, arctic white/palomino--314,000 miles
1978 240D 4-speed, Euro Delivery, light ivory/bamboo--370,000 miles
2005 Jeep Liberty CRD Limited, light khaki/slate--140,000 miles
2018 Chevy Cruze diesel, 6-speed manual, satin steel metallic/kalahari--19,000 miles
1982 Peugeot 505 diesel, 4-speed manual, blue/blue, 130,000 miles
1995 S320, black/parchment--34,000 miles (Dad's car)
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