Wow, I can only hope I do so well as my years progress! I can say this though, at 75 my father would definitely not be able to take on a project of this scope. But I somehow think that had he kept “chugging along” up to this point it would be a different story.
As for the OP, did we ever find out if failed meant zero compression or just lower compression? I have never delt with an XK engine but I know you can find “running” mid 80’s parts cars under $1000 all day in my area. Maybe getting a running engine and having the whole engine swapped in would be worthwhile if the vehicles are sentimental to you. The labour would likely be less than a rebuild and while no longer “original” would be a way to keep at least one of them.