Mercruiser Woes-What Next?

[oldfielder]

Since we like to share our triumphs as well as tragedies here on CSC-here's a crappy story:

Well, my years of trouble free performance and never getting towed in have come to an end this fall.
My 5.7 stalled at idle the other day while I was crushing the bass on jigs. Hmmm-that's funny this motor never stalls. Start it up again-same thing a few minutes later. Try again to start-no sir, just a spinning starter.
You guessed it(maybe)-I ingested saltwater through a failed exhaust manifold. Turned it over by hand to get the water out of the cylinders on that side. Fogged those cylinders. The next day I discover that the water leaked down into the oil, so I pulled that all out and pickled the motor with diesel because I'm going to mom's house for the holiday.

So here's where I'm at:
The motor is a 99 and doesn't owe me anything, but saltwater ingestion just can't be good.
Do I
a.) Try to save it and hope the internals are good and ride around nervous for the next few years.
b) Go for a rebuild
c.)Drop in a new motor and be done with it.

Don't tell me to bracket it and put on an outboard 'cause I aint go the coin for that ; )

Anyway, any of you motorheads out there feel free to give me advice or moral support.
And, to all, Happy Thanksgiving!
Doug