That's not the worst you'll see by a long stretch, so repair using the reinforcement plates look like a good option.
The Turner Motorsports kits provide all the plates and decent directions for the home wrench for around $100.
http://www.turnermotorsport.com/p-39...ement-kit.aspx
There's a fair bit of work involved to prepare for welding, the welding itself, and re-assembly. There may be a Dorki or two who might offer a good deal to do the welding for you if you take it to their place. Just thinking out loud on this.