Ugly clipping in the sky - what to do? (DP1x)

In the first attached picture, note the visible and ugly clipping in the sky. The X3F is available for at least a week from:

http://dl.dropbox.com/u/192460/Temp/sigma/clipped_sky.X3F

I wonder: Is there any way to save such a picture? Or would you discard it?

With SPP's X3 Fill Light at -0.5 and Exposure at +0.5 (plus some saturation) I get a smooth transition in the sky: second attached picture. It looks OK on my laptop's screen. But how would it look when printed? Weird? I want a naturally looking picture, not something that looks cooked.

Also: How to take such a picture in the first place? Exposing for the sun would make the subject in the foreground very dark.