The answer is probably in the intent of your purchase. Did you know the extent of the damage when you bought it? The last photo shows it clearly. What were you planning to do with it ultimately? Did you intend to produce a magical restoration to new appearing? Did you just want a Pete as a good smoker? Examine your soul, my son!
I put a bid on it without reviewing all the photos. I'm fairly new to eBay, so it was a bit out of excitement too. I agree, topping it is the best choice. I hate re-fixing things further down the road.
My initial thought was to restore the pipe and keep it. I like pete's and ehrlich's and figured pipe resto would provide a way to buy inexpensive pipes. Not to mention a little extra project to do.