Yeah it does come down to cash unfortunately. None of the options are cheap. It's worth confirming it's dead/dying first though. Listen for rod knock when it's hot and do a compression test.
The bigger stuff at dealers have higher discounts if you have a good relationship with them. For example, my dealer knocked a DMF and clutch down from £1400 down to £750 all in. A brand new CDL long block (block and head with cams, cam cover etc) is £4K retail. If you flutter your eye lashes at the parts man, I'm sure an AXX long block can be had for a reasonable price. That would be a brand new engine obviously.
If the car's a keeper and you want the minimum of fuss, it's what I would do personally. Rebuilds are never the same as a factory engine. They always use more oil (honing isn't as good as factory) and the rebuild cost isn't far off a factory engine when all's said and done.
Or there's a used low mileage engine off ebay option, but there may not be many decent AXXs out there as they're all getting on a bit now.
Sorry mate, it's a bit of a sh1tter. I wouldn't fear the worse just yet. Does it drive OK other than suspected pressure problems? Power OK or is sluggish?