You don't say where you live or RV to. It's your individual call, but I'd look at what you want your next 140,000 miles to cover; including, why do you need an AWD? Is this a snow vehicle?
Is yours to be a city or hilly city vehicle, or a main daily driver? I've found 5 spd tranny clutching to get tiring over the years. The mechanic's listed faults on other vehicle didn't seem especially bad to me, but maybe you can take your time.
So, answer: 50% of me says you should look for a new / different vehicle. If I were fixing your old car, I'd get the new engine for the additional $2K, and take care of it.