That's the right answer. Most of the cars that have lived full lives here are rotten, and with severe front end damage are simply not worth fixing regardless of your emotional attachment. But in this case, it sounds like it might be a viable candidate for repair.
The only shop I know that's local is in Bellingham. Short's Euro Custom, Ryan Short only works on aircooled VWs, and only does bodywork. I've seen what he does, and his metal work is really good. I'm probably going down there on Monday and will ask him.
Finding a donor car for the sheet metal would be a lot easier in WA state since their cars don't have near the rust ours do.