I am torn on this just like you.  But the one thing I try to remember is this gun is no different from any other gun.  It is a tool.  When the tool was damaged or wore out it was either repaired or scrapped.  Humans are the only animal that imparts emotion into a "thing".

I would document the heck out of it.  Post pictures here and sell it as is.  Then the next buyer can worry about it and anyone who comes across the krag in the future can see what it was like on a given date in time.

Culpeper