My thought? Ride it till it dies. Might take quite a few thousand miles but the damage will probably lead to the chainstay breaking there, Likely not an issue other than spoiling a ride. My Peugeot UO-8 broke just behind the gusset. Noticed it while riding and just rode easy going home.

Or take it to a framebuilder and have him fill the dented and scraped are with braze. Have him or you file the braze to smooth, take a spray can and do your best to match the paint. Ride it, now until the frames dies for other reasons. (That could take a good long while.) I'd guess a framebuilder would want around $200 for the repair,

So, do nothing and get what you can out of the frame or spend a couple hundred and sacrifice the finish in the area. Or spend a lot more and have both good as new and the looks to go with it.

Ben