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Keep it
Yes. Fix it. Definately worth it. Questionability of a used car, and the car payments and interest you'd pay on a new one isn't worth it.
Comprehensive list, and I would add possibly to it, for you to consider: replace thermostat; lube sunroof track rails, change wiper blades, and if radiator is original, with unreinforced hose neck, change it when you change the hoses, the new Nissens and Behr don't have this fault, clean or replace your air filter, maybe the fuel filter, and inspect the motor mounts and muffler hangars, and if you need new ones, ONLY genuine MB ones, and lube the door and hood hinges. Definately flush the brake fluid.
Inspect the flex discs too. May or may not need the rear diff oil changed.
Sounds like it is basically a fine car, just needs to be caught up.
Nothing like them.
Definately do the timing chain tensioner and guide rails, by now the guides will be root beer brown and have cracks on them, if they crumble, and the chain slips, and lets go, you will be in trouble.
Report back with your decision sometime.
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 1991 560 SEC AMG, 199k <---- 300 hp 10:1 ECE euro HV ...
1995 E 420, 170k "The Red Plum" (sold)
2015 BMW 535i xdrive awd Stage 1 DINAN, 6k, <----364 hp
1967 Mercury Cougar, 49k
2013 Jaguar XF, 20k <----340 hp Supercharged, All Wheel Drive  (sold)
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