Don, that really is bad news. I know that you have put a lot of effort into the SD and its just a shame that this has to happen.
But, it has and I would encourage you to reconsider spending $4K to fix it.
The numbers are as follows:
If you spend $4K, you have a vehicle that is mechanically sound, but in need of paint. You need to spend $7K to get a mechanically sound vehicle with perfect paint.
It's currently worth say, $1K for parts.
So, can you find an SD with equivalent miles with perfect (or close to perfect) paint for $8K? I believe that you can. In fact, I believe that you can find one for about $6K and you can use the new parts from the existing vehicle.
So, even if the existing vehicle is worth nothing (because you have taken all of its good parts), you can be into another, equivalent, SD for $6K.
The whole question is time. How much time must you invest to find the right SD and how much time must you invest to transfer parts from the old one to the new one?
It's also a question of attachment. If you are attached to the current vehicle, and an equivalent replacement would not cut it, then you already have your answer.
Sorry to hear about this news. Good luck with whatever you decide.