To me, you could go either way - custom or classic. It is your bike, build what you want, you have my approval.
I would say that broken piece could be fixed but i won't know how strong it would be. You might clean up that entire area to see if anything else has been damaged with the case.
If it were me, I would stay with the SOHC motor in the bike. Adding the CBR motor might be kewl but you will need to really stiffen that frame to handle the forces of that motor. Besides, the SOHC motor is just so darn sexy!
I am sure you will get other comments regarding all of this.