Steel frame? Personally, I wouldn't think twice about that dent.

And the fork can be saved. My father fixed one that was bent the same way years ago...And it lasted quite a few years after that. (The fork never did break, or even bend, but I can't recall what became of the bike itself).

It's all about finding someone with a blow-torch and little fear of lawsuits (i.e., not a LBS)