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Rebuilding them and changing electrical sensors would be much cheaper then replacing them. $10,000 sounds like a good price to rebuild the engine. However they will still be what they are. You should be able to make them reliable though. The advantage of these over the new electronic ones is as long as they have compression, fuel, air, and cooling water you can make them run one way or another. If the electronic ones have a bad sensor or computer or whatnot, there is nothing you can do to get it to run.
If you have the opportunity to change them with modern ones, and the owner is willing to spend the money, and plans on keeping the boat for a while, it has a lot of advantages. Easier to find parts, they run cleaner and quieter. I like Northern Lights generators for that size. The new Onan's are pretty good also, as well as Cat generators if they make one in the size you're looking for.
The PTO shouldn't be a problem IMO. I ran one yacht with an ONAN and a PTO (bowthruster) and when you turned on the bow thruster it cut the electrical output on the generator end to give the PTO full power.
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