My advice...push for the head to be replaced. You have dotted your i s and crossed your t's so this is the next logical step. I would also involve the service manager with the play that you already paid the deductible. The dealer has more latitude in the decision than they sometimes play out.
2 choices after that sell or keep.
If it was my car I would keep and would first change oil at 1,500 miles a la old school break in after head replacement and then every 5k to 7k there after (never to exceed 6 months...at least at first). I would lean on the conservative milage end at first to make sure lifter noise doesn't come back. I would also send my oil into black stone for analysis.
Last edited by x3brian; 11-19-2012 at 08:18 PM.