The problematic ZF tip is the only slur in the otherwise perfect D2. A rebuild is good, if the car is for short term (2-3 years) ownership. If your D2 is more of a long term ownership car, 3 years and beyond, a manual conversion (with its cost implications) is a great idea.
I've been looking at starting mine now, just awaiting my pedal box (custom) to be completed, and hopefully, if the weather's still as good as it is now, teardown would begin. I don't want to be working on my car so close to winter, otherwise.
Good luck with your rebuild, buddy.