Did the seller reimburse you for any of the damage?
I sold a Prelude last summer that was not my size. If it had been I think I would have kept it. The higher end Schwinns of the mid to late eighties are very underrated. The next Circuit\Prelude or Tempo that come along in my size I will probably keep.
My first thought with your Prologue would be to add blue tires,seat and bar tape. Red, white and blue to show off the American made bike.