The hardest part is competent inspection.
Rebuild kits are almost never worth it. If that many bearings are hosed, the transmission is probably scrap. And if no hard parts are hosed, you really should be nice to that unicorn in your backyard.
There are a bunch of parts to keep track of, but teardown and assembly are not all that difficult for M5ODs. The biggest "gotcha" is installing synchronizer collars backwards (mark them before disassembly). Now, inspection can be.
Depth and outside micrometers are highly advisible for setup, but you can do it with a (good) caliper. You will need feeler gauges. Most importantly, you'll need access to the factory service manual for the specs. You will PROBABLY do ok reusing the original setup, but it will destroy itself in short order if certain clearances are wide.
The most important part of any technical exercise is not to do it if you don't have to. Grinding into all gears is, as Evan said, much more likely to be a clutch problem. Grinding into ONE SPECIFIC gear might be a transmission problem.
If you wear all of theblocking rings out in exactly the same way, I have a certain bridge for sale in New York. Slightly used. Most people simply do not use 1st in anywhere near the same way they use 5th.
I haven't done a lot of transmissions, only a few. But they are all still on the road. AllanD deals with these on a constant and ongoing basis.