A few things I'd add. First off, I ultimately agree with Rlwainwright. The technology has really advanced and what you get with new receivers and pre-pros is fantastic--especially room correction.
However, I'm not sure what you're using the receiver for. Are you considering any new sources that are HDMI enabled or are you happy and everything you're doing is just analog?
My sense is that the repair price is somewhat fair; however, you may be able to get a used one for that price and for a few hundred more, you'll get something brand new that really makes a big difference for you and gets you current with the technology.