Is it worth doing a engine overhaul on my '93 Wrangler?

What is your question?

Original owner, 241K miles, I have replaced a lot of external engine parts and clutch (fan too). It is burning oil, putting a quart in every 500 miles, could be 700. I love my Jeep but hate gas milage. 2.5L engine 4 cyl. It has ticked in the past but oil additives have helped with that. Runs smoothly and fairly quietly. My new clutch has play in pedal if I change gears with some exertion the clutch pedal almost drops to the floor but goes back to new normal when I don't go heavy on acceleration RPM's as the gear changes. Needs a paint job, might get $2K if I sell it and just get a new car. Mechanic says his rebuild will be better than original. $4K for that. I do trust him. I really just need encouragement to keep or cut.