Assuming it's a manual, is the clutch original? You might want to consider having that done while they've got it apart to save some on the labor. I got about 145k out of the clutch in my old Legacy, although I think whoever owned it for the first 50k wasn't exactly gentle on it.
Wouldn't hurt to see what a dealership will give you in trade in its current state, and you can weigh that against the repair costs. The place where I traded in my Legacy didn't even ask about its service history, aside from whether the clutch had been replaced at some point. They either didn't notice or didn't care about the couple of rust spots, worn out suspension, or the fact that it was rollin' on bald snow tires.