I disagree with almost that entire post. I agree that rebuilding it will be a valuable experience. Building an engine from the ground up really gives you a better understanding of how the parts work together and how the engine as a whole works. But, reman engines are almost always cheaper than a rebuild. I have a stripped down 5.0 at home, I can't buy the parts I need to build it myself for the price of a reman unit.
As for no major damage if it runs, I disagree. I have seen a running engine with the crankshaft snapped in two. I have also driven a truck 75 miles with significant bearing damage, 40 miles with spun mains, and 5 miles with a spun thrust bearing (yes, those were all the same truck with the engine in progressive states of ka-blewy).
As for your statement about a crank grinder and tuition. I fully disagree with that. Unless you are a professional machinist or engine rebuilder, crank grinding is an obsolete, and nearly worthless skill. The equipment is large, bulky, and expensive. Frankly, to spend the money on one, and waste the class time to teach a skill that is unused in the automotive repair industry today would be an irresponsible use of resources. My school didn't have a crank grinder. We didn't learn to cut crankshafts. It's a skill that I have yet to need. If an engine is in that sorry state, it gets replaced and sent to the rebuilder.
I know a lot of guys in the business that have a lot of out-dated skills, I'm pretty sure I don't know anyone who actually knows how to cut a crankshaft properly.
The rings are shot. Or the cylinder walls are gouged out so bad that the rings aren't sealing anymore. Does it come out the oil cap too?