CHOO CHOO
BackPagePhil
Engines are plentiful and therefore relatively cheap. Source you one and reseal it and maybe even AFM delete it while it's out. The LS platform is easy to work on once you know a few key points so it makes a great "learner". Being intimately knowledgeable of the engine will be really handy for any future servicing. Consider yourself fortunate to have a decent head notice instead of suddenly having a blown motor and in a bind to jump on the first replacement you come across.
Did they specify why would it be losing compression? Maybe the valves are just cruddy and not sealing so set of refurb'ed heads would fix it. Like the others said- get a second or third opinion.
He said the seals are going bad most likely.
I think I might have my neighbor check it out. Being that I see him work on people's cars constantly and watching him build a old mustang from the ground up and his old hot rod, I'm sure he would be able to test the compression. And, I know I can pay him and trust him to put in an engine if I decide to get a new engine.
After having some time to think about it, I definitely will keep it and use it as a learning vehicle.