40D is busted, now what?

About a year ago my 40D took a spill off the desk. It gave an 99 error code, but after about 100 power cycles it started magically working again except for full auto mode. I never use the full auto so it wasn't a big deal. However a couple weeks ago it started doing the Error 99 again at power on and nothing seems to fix it. I've done all the tricks I can find on the internet, at this point it's send it in or replace it.

So question #1 is it worth trying to fix it?

i'm thinking it's not worth trying to fix.

So the replacement options are the 550D, 60D, or 7D. I think from Canon's perspective the Rebel was designed for people in my situation. I'm ameture, mostly taking pictures of my two kids age 2 and newborn. But I love the advanced features of the Semi-Pro series. I shoot mostly indoor low light as the kids get older I can see doing mostly outdoor action shots.

On the 550D

I've never liked the "Rebel" line because it feels like it was spec'd to wal-mart quality and it's crazy how hard it is to change settings using the stupid menu on the back.

On the 60D
Sounds like they turned this into a Rebel, see above.

On the 7D
Is a good solid feeling camera really worth an extra $400 over the 60D?
Is there really any good features I would use that a 7D gives me a 60D does not?

7D has been out for 14 months, are they going to release an updated model in the next couple months?

Thanks for any advice!
Andy

(Edit: fixed typo)