Is needing a new engine good or bad?

Hello, especially with Honda, replacing the engine is no indication at all of other issues that could potentially occur. By the way, I personally manage a Honda dealership service department daily now. Whereas it's unfortunate a major repair is required, the good news is that Honda only uses new parts for their engine repairs. You don't get remanufactured, you get new parts. That's a positive thing. I'm not sure what led to the failure of this engine, but I will tell you that Honda is excellent at standing by their vehicles and repairing them as needed. Even if you had recourse for "Lemon Law", the vehicle still will get repaired under warranty. "Lemon Law" processing can take quite a while to resolve, and besides -- there are many factors to consider to have the vehicle qualify for any remedy under that law. In my opinion and experience -- fix the car, and move forward. Good luck.