'02S 60K Engine go boom - Fix or Not

[barkinfool]

Hi All --

Supreme bummer to make this post. Last week my nicely conditioned '02S grenaded while pulling into the garage after a short drive. 60K miles, very well maintained. There were no warning signs. Owned the car since '09, bought w 13K miles & have all the maintenance records. Had ceramic IMS, clutch, & pretty much all else replaced per specs before this happened. Trusty indy who did the IMS/clutch @ 35K wants to buy the roller for usual figure & make a track car. He does not recommend replacement engine given value of the car. Questions are:
Should I put a used S engine and fix given all majors done & I love the car? (I have a line on an S engine for $4K). How much should it cost beyond cost of engine to get it repaired (# hours or $$)? Is there any examination that should be done of the replacement engine before installed or should it go in blind?
Extra bonus points & not to be annoying since this might be a crazy Q, but should I put in a bigger 996/carrera engine if I'm replacing? I don't feel the need for more power, but given the damn thing blew up, should I spend a noticeable more $$ to put in carrera when I'm replacing the damn thing anyway?
My thanks for opinions & I'll let you know what I decide!