Blown engine

Take your coach to an engine rebuilder and don't pay those inflated dealer prices. Is it really blown? Were you told exactly what was wrong? I'd get a second opinion.

There are much cheaper places to have the work done than a dealer. Check around.

In 2012 an in Frame rebuild, of a Cummins 6TB diesel (1995 Safari) cost us $11+ Grand IIRC !
Plus 2 weeks of motel fees and 3 meals a day
This was in Flagstzff Az,
Work was done by Arizona Diesel, great people there,
NO LONGER have that RV so i can't check the service record paper work to verify the amount

Thirty-five grand would have made a fairly good downpayment on a new coach.

About eight years ago a person I knew had his Fleetwood Flair engine out while in Florida.
It cost him 12k to have it replaced. He had no problems with the new engine.
He died last year. Enjoy it while you can.

Sorry for your loss...
We Like the entire package of our 2004 Allegro. So when the engine went at 80,000 miles we opted for a rebuilt one. 2016 cost close to 20,000 dollars,
and a month off the road. Then this past summer at 108,00 miles the transmission gave up the ghost, a week off the road and $5,000. Oh and BTW,
new total wrap with awning last summer (10grand) and new window curtains all around this week.(1800). Yes I am sure there is a new coach down payment in there somewhere but we are not willing to give up on her just yet.

As it happens Nationwide INsurance is about to take over my 2005 (20th next month) the engine is a 2004.. Price they quoted you is actually cheep/.

I do not know who will end up with my engine

If you like your coach, I say go ahead and fix it. We are always upside down on the value of our toys but 10 or 20 thousand dollars is not a lot of expense compared to the joy an RV can provide