Barbara -
I have a smaller boat - an NS22 O/B. I bought MOUSTACHES in 2012 and she came with a 10-year old bulletproof electric start Honda 9.9 outboard. That means if the engine was running and fired a shot into it, it would probably keep running.
In 2017 (I think), I changed that engine for a Tohatsu 9.8, electric start and electric tilt (the tilt feature @ $300. is priceless, especially with a pooched lower back AND I sail with NO drag). Yes, I could have had a full maintenance jobbie on the Honda for, maybe a grand, and, likely, most of the time, it would be fine but … life is only one. I was tired of the odd konk-out, miles offshore, and the not-always-cooperative start and just the mental headache of having to deal with various “what ifs” while trying to fully enjoy a truly beloved recreational activity. The aim of all of this is that it is fun, not something to worry about. Up here in Toronto, our sailing season is 6 months, minus time lost for rigging the boat once she is splashed and de-rigging her prior to haulout. The last time I checked (and this is hard to believe), I’m actually NOT getting younger (though I look like I am).
I switched engines to make it all more fun and it worked. In 8 - 10 years, I’ll do the same, again. I’ll be 85 years+.
How long do you keep your car ?? When you switch cars, is it because you must (or is it, mostly, because you want to .. or. to be fair, is it a bit of both) ?? Many cars cost a GOOD buck and are kept for a few years and traded in (at an impressive $$$ loss) because of … ??? … the new model ?? We are all victims of our cars and are willing to drop a fortune on them. In most cases, they are simply beasts of burden that we require for daily life.
Maybe it’s simply time for a new engine because you aren’t one of us who: loves to tinker mechanically, doesn’t want to see how long you can run that venerable diesel for, wants/needs/loves to save money and keep something going (which is genuinely noble, by the way). Maybe you want/deserve a fun and worry-free sailing experience that include starting up the old iron pig and enjoying the experience of motoring ?? (Like me.)
Thor et al make excellent points. The answer to your needs (electric vs. diesel) lies in the equation surrounding range. It is hard to beat the silence and majesty of electric motoring as long as you have enough juice in your batteries. And, it’s hard to beat the reliability and plain old/NEW smart design (and ease of maintenance) of a good Beta diesel. These workhorses (30 years younger than your Universal and filled with today’s ideas) power 90% of the thousands of long, heavy, HEAVY steel narrowboats that transit the canals of the British Isles, year in and year out. They are the best products out there. Some folks think that a Beta uses a Kubota tractor block. Partially true. They use the entire engine which is simply marinised.
From the BETA site:
Beta Marine’s engine range is based on the most advanced water-cooled diesel from Kubota. Every engine from the BZ482 up to the BV3300 incorporates the Kubota E-TVCS injection system.
Do YOU deserve a new engine on your boat ?? I dunno … maybe you don’t. (Sorry - I think you DO.) Yes, it’s a fair chunk o’ change but (and this speaks to your point) it WILL up the resale value of your boat. It will let you relax. It may not cost more than a 2-week Viking Riverboat European trip for two. If you want it, it’s not a wasteful or frivolous expense.
However … (there is always a however), before you embark on a change (Diesel or DC), make CERTAIN that you can avail yourself of an excellent shop/mechanic (highly recommended) who will ABSOLUTELY be able to deliver this completed job to you.
In the end, if you want a new power source, don’t forget that you deserve it. If you can afford it (and provide work for others and stimulate the economy) AND can find the right installer, go for it. It will make you SMILE.

And keep us in the loop.
Best of luck.
Ernie A. in Toronto