Sounds like the dealer just doesn't want to mess with it. I've never heard of an engine that was still running that couldn't be rebuilt cheaper than a replacement ('course I'm not a mechanic so I could be talkin out-my-arse).
my friend works at this particular dealership. if he says its not worth fixing then i believe him.
im just all bummed out because i went from driving the vx to driving a chevy 1500 van thats bright red and cant turn for shizzle.