2000 Saturn SC2 2000 Saturn SC2: I blew the engine, repair

I have a SC2 with power everything, moonroof and tan cloth interior. On a long road-trip I blew the engine on too little oil; never got a heat indicator *nor* a low oil pressure indicator. Towed it to the dealer and was told a new engine was required - and a reasonable sounding deal would be a brand new engine with warranty for about $3K + labor. The car has sat for about a year while I try to make ends meet, other non-related issues; now I'm worried the rear brakes are spider infested and therefore corroded despite monthly washing it collected wildlife back there.

My question: should I repair it now, or sell it for parts?

Family advise is to part it out, because I don't know what else might go wrong. But they can't help me get a new car so I'm thinking their opinions only hold so much water; if I do get rid of it, what then? Spend money on someone else's used car that I don't know the history of?

My feeling is to keep it and repair it - because lets say I spend $4K, even $5K to get it reconditioned - I would get a car I know and trust with all sorts of comfort features that I would NOT be able to afford otherwise.

Advise please?