It is a valid question and as time passes it becomes even more and more valid. Doesn't it?
When l bought my Adams, l threatened my son to spend his inheritance on a yacht. He laughed and said "good on ya, dad!" So, l guess, it would not be much frowned upon if l spent another 10 or 11 boat dollars on a new engine. Ha ha.

However, if l could help it, l would not.
I have a small twin cylinder Vetus engine, shaft, and a twin folding prop. Fresh water cooled with heat exchanger. About 1988-89.
Well, one always could have more power but it is working fine, no hours known, who cares, starts and stops in a flash and the only problem was in the last five years a pair of glow plugs beside regular maintenance.
I mean regular.
It does not use any oil, does not smoke at all, white or black, so l guess it is ok inside.
If it carks suddenly it would be something major which, knowing diesel engines all my life, doesn't happen too often without warning.
This boat engines are tough little bastards, hard to kill, and they are seldom abused which is a main point in a life of any engine if regularly maintained. (change the bloody oil in every three months, no matter what!)
Parts availability is good, Vetus Maxwell in Sydney is represented by Fenquins and as far as l needed a part it was always available. Thou, l did not need much.
I would try to rebuild it.
If that would not be viable, l would shop around and go up a few horses. Yanmar most likely as my son doesn't minds spending his inheritance

and l love my boat more and more day after day.
Maintain your engine, it might save your life one day!