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Expensive repair of an old riding mower; fix it or get a new one?

Something tells me it's just the pulleys, belts and maybe a gear on the deck. If it were me, I'd ask them for a run down of what's wrong, with a list of the parts involved, then drop that deck at home and do your own repairs. Worst case if the drive shaft runs then you know it's the deck and you can toss the deck in a truck or back of an SUV to get to worked on. 10 years ago they were already making those things to where it intentionally throws a pulley or belt or gear to avoid straining and wiping out the engine. As you say, the mower runs great, so that tells me it's only the deck.

+1. It could be the bearings and shaft, too. I've never worked on a John Deere mower, but most of the time dropping the deck isn't difficult, nor is changing the deck bearings. Considering the cost of labor, the parts should be less than $500.

Coincidentally, I'm looking for a new mower because I can't find the necessary parts for my 12 year old mower and it's getting pretty worn out. I was toying with the idea of a John Deere in the hopes the parts would be available longer.
 
Just replaced the carb in my 2004 or 05 Craftsman with a 17 HP Kohler. Runs like new. Best mower I've ever owned.
That being said, when it does give up the ghost, I'm replacing it with an ancient Gravely, or maybe an old Simplicity. They just don't make 'em like that anymore.
A friend of mine has a "very old" Gravely and he would not part with it. My Wheel Horse has a lot of cast iron parts and a welded deck, it is heavy, but is tough as nails. It also has a PTO so I could run snowblowers and such.
 
Coincidentally, I'm looking for a new mower because I can't find the necessary parts for my 12 year old mower and it's getting pretty worn out. I was toying with the idea of a John Deere in the hopes the parts would be available longer.

Back when I bought my 36" walk behind commercial the same type John Deere models were made by Bunton with a Deere badge on them.

Bunton used to make a rock solid walk behind.

http://buntonturf.com/
 
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